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I'd backup fairly frequently, particularly with financial data. Just consider this: How much data would you have to re-enter if you had to restore to the way it was a week ago? A month ago? A year ago?
I use the SD Card for all the data I can put there, plus all the programs I can install. I try to keep Main memory as free as I can. And I put all ebooks on the SD card. The rationale for keeping main memory free is that I find the PPC more responsive with more main memory available. It gets slower as the free memory decreases because it has to shuffle memory around to let everything have room to operate.
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