This is one of the few bits of OS2008 that I _hate_... OS2007 did this better,
and it needs to be fixed.

1) No more nesting of folders. You get one set, no more, no less. No subfolders at all. No 3rd level (or more) or hierarchy.
2) No way to make a more 'text/stylus' friendly menu, like the old way.
3) Way too much scrolling, if you have a lot of apps installed.

OS2007 worked, and while it wasn't as 'finger friendly' it was WAY more useful.
I don't see why they didn't offer both options (ie icons/finger sized, or text/small icons/more menus) since a menu choice/option would be easy to implement.