After two weeks with the iPod Touch, I finally have it set up the way I want! I wasted a little money (less than $20 but still) on some apps that did not work for me. In one case, I went with a new, cheaper app instead of a tried and true one, and I paid for the mistake with an unuseable, terrible app and then I still had to go and buy the other one! Also, there were some free games I deleted, and some 0.99 ones I took a chance on and that did not pay off. A few apps got amalgamated too (I spent 0.99 on the Weigt Tracker app, but once I got a spreadsheet program, I realized I could do it just as well in there, and pretty though Weight Tracker, I was getting app overload and just didn't need it). And in one case, I had an OCD issue with the way the app name was displayed, so I downloaded something else 
So here is my final setup. I tried to organize them both by how often they are used, and by the best aesthetic arrangement of the icons.
SCREEN 1: Apps and Best Games
Settings
Spend (love this, great app)
Bookmarks (del.icio.us, you can read them off-line!)
Instapaper (great for marking internet recipes to try)
eReader (LOVE this! Have a Fictionwise account and am reading all my stuff)
Contacts
Calendar
Notes (use it to keep workout log and other quick notes)
iSort (there IS a cheap database program for iTouch! Using for recipes)
Spreadsheet (use it for various things)
Workout (this is an interval timer)
iFitness (was an impulse buy when price dropped low, we'll see if I keep it)
Firewords (love this! 0.99)
Imangi (love this! 0.99)
Word Whirl (there are free versions of this which I found after, but it is a good game)
Trism (love this! crashed at first but a reboot fixed it)
SCREEN 2: Games
Scrabble (I buy this on every platform I use, I enjoy word games)
Spinblox (An okay game but I would not buy it again)
Moonlight (love this!)
Word Up (love this! and only 0.99)
Solebon
Jive Lite
reMovem
Brain Tuner
5th Grader (I like the game show, but would not buy this again)
Word Reels (so-so, more a memory game than a word game. Might delete)
Galcon Light
iDice (Okay for now, but I am still searching for a good Yahtzee clone)
Trace (trying it for awhile, may be too impatient for this type of game)
Vexed (was a little underwhelmed, but it has all the level packs, so good value)
Aqua Forest (a cool toy)
Enigmo (bought due to raves by others and low price; sorry now. I don't get it)
SCREEN 3: Internet and Other
App Store
Mail
Safari
Weather
Youtube
Facebook
Wikipanion
Maps
SCREEN 4: Apps I Don't Use Often/At All
Calculator
Photos
Clock (I only need to track my own city and I don't need an app for that)
iTunes
Stocks
On my bottom row:
Music
Video
iLog it (food diary)
Lists (love it! Great list-keeping app)
So, how did I do?
So here is my final setup. I tried to organize them both by how often they are used, and by the best aesthetic arrangement of the icons.SCREEN 1: Apps and Best Games
Settings
Spend (love this, great app)
Bookmarks (del.icio.us, you can read them off-line!)
Instapaper (great for marking internet recipes to try)
eReader (LOVE this! Have a Fictionwise account and am reading all my stuff)
Contacts
Calendar
Notes (use it to keep workout log and other quick notes)
iSort (there IS a cheap database program for iTouch! Using for recipes)
Spreadsheet (use it for various things)
Workout (this is an interval timer)
iFitness (was an impulse buy when price dropped low, we'll see if I keep it)
Firewords (love this! 0.99)
Imangi (love this! 0.99)
Word Whirl (there are free versions of this which I found after, but it is a good game)
Trism (love this! crashed at first but a reboot fixed it)
SCREEN 2: Games
Scrabble (I buy this on every platform I use, I enjoy word games)
Spinblox (An okay game but I would not buy it again)
Moonlight (love this!)
Word Up (love this! and only 0.99)
Solebon
Jive Lite
reMovem
Brain Tuner
5th Grader (I like the game show, but would not buy this again)
Word Reels (so-so, more a memory game than a word game. Might delete)
Galcon Light
iDice (Okay for now, but I am still searching for a good Yahtzee clone)
Trace (trying it for awhile, may be too impatient for this type of game)
Vexed (was a little underwhelmed, but it has all the level packs, so good value)
Aqua Forest (a cool toy)
Enigmo (bought due to raves by others and low price; sorry now. I don't get it)
SCREEN 3: Internet and Other
App Store
Safari
Weather
Youtube
Wikipanion
Maps
SCREEN 4: Apps I Don't Use Often/At All
Calculator
Photos
Clock (I only need to track my own city and I don't need an app for that)
iTunes
Stocks
On my bottom row:
Music
Video
iLog it (food diary)
Lists (love it! Great list-keeping app)
So, how did I do?