I have several folders. All on my Home screen.
1). General - this is where I put the apps I use most. Safari, my ewallet, Mail, Skype, FaceTime, Calendar, World Clock, Camera
2). Business - this is where I keep all my business type apps. Bank, Brokerage, notes, QuickOffice, calculator
3). Utilities - Settings, App store, DataManPro, Dropbox, Skydrive, iTunes, Ariport utility
4). Puzzles - all my puzzle type games like Sudoku and my crosswords
5). Games - other games
6). Games 2 - more games
7). Travel-Weather - Maps, weather apps, Yelp, etc
8). Entertainment - iBooks, Kindle, AVPlayer, TimeWarner, Photos, etc
9). Junk - stuff I don't use like the NewsStand, GameCenter
10). Misc. - apps I use rarely such as WebMD, other browsers like Photon.
This gives me two rows of 5 folders on top of my screen. I keep nothing on the dock because I only use the one screen. I keep the 3-4 apps I use most in the multitask area so I use the four-finger swipe to access them all the time. Safari, Mail, iBook/Kindle (depending on the book I'm reading), and Skype. Otherwise I remove other apps from the multitask area so I don't have to swipe through them. This way I don't have to go to the Home screen a lot.
I like a clean screen. I dislike a lot of icons cluttering it up. I tried keeping 5 folders per screen and using 2 screens but found I didn't like it.