I have switched to only having two home screens on my iPhone, and it seems to work well for me. The first screen has apps that I use most often with no folders, and the second screen is Settings, Newstand, and a bunch of folders. This system is shamelessly borrowed from Marco Arment, although I don’t try to keep the stock apps or their equivalents in their original locations. Overall, I would say I have to use Spotlight less, but I still find it quicker than scanning for the right icon much of the time. Also, you’ll notice I’ve switched to Verizon.

Screenshot of Current Home Screens

Nicholas Lindley