OK.
Great.
But you came here wanting to have extra space, and I told you one (good) way to do it.
If you are unsure about the full restore, then just leave it as it is. That's your choice.
I think you can likely fumble around and maybe come up with some more space, but the iTunes restore is a safe process, and works well.
All you need is to let it do that, be patient, don't rush the process.
You'll be fine.
The restore process takes care of all that for you. iTunes shows you what apps are installed on your iPod, and you can pick and choose which actually go back in place.
It's really that easy.
Plus, the full restore, even if you keep the same exact set of apps, will usually leave you with more space, because the restore process leaves out the data files that each app creates over time. And that can consume quite a lot of your storage space.
You should end up with more space available, and that's your goal, correct?