Yeah the apps will still be there. I'm pretty sure 1.1.4 is more stable. Since I updated my Touch, I haven't had Safari randomly quit on me while browsing and listening to music yet. The only thing is that WiFi will disconnect without warning and I'll have to go into the settings and re-select the network.
You won't lose those apps or even the data that those apps store. v1.1.4 seems a bit snappier on my ipod touch. safari doesn't show an empty white page anymore when flipping through tabs.