I never understood why it was such a sin to some people to have a messy desktop. I find it very functional to use considering that I see it in almost any app that I use and can easily drag stuff in or out.
I have:
>Hard Disk
>iDisk
>2 external disks (only when they're plugged in)
>Data attempt folder (my hard disk died about a year ago, and the genius bar were able to get most of my data back and put it in this folder)
>Downloads (better to have Safari automatically put downloads in here than just on the desktop)
>Miscellaneous (If I have a random file on my desktop, it'll be dragged here eventually)
>Music (not my iTunes music, but rather some LEGAL stuff I've downloaded off the web.)
>PDFs and Photos (If I find a photo on the web and need to use it for a project, it's automatically and instantly dragged into here.)
>Screenshots (I occasionally need to take a lot of screenshots for certain projects, and I clean up my desktop and put them in here. The problem is, I get so many pictures labeled "Picture 1" that I often have to rename them, and it becomes a pain.)
>Two extra spots on this column. I try to keep it down to a column, but my desktop usually has 1.5 columns filled.
It's a pretty good system. I should rename my hard disk something other than "Macintosh HD," but it'll probably mess up some of my FCE files, which I hate it when that happens. I thought about naming my iMac "Ying" and my future black MacBook "Yang," but that may be hard.