Alright, so far, the general consensus is that everyone wants smooth scrolling lists (and or grids too) with icons.
Now in order to do this, every icon would need to be cached ahead of time. This means that some limits will need to be enforced, such as the maximum number of icons per screen. This could be limited through a maximum number of files per folder, but too few files per folder is frustrating, and too many files eat memory.
Lets say we want to use 16 x 16 icons for files. Each icon in ram will use slightly more than 512 bytes. If we limit each folder to 256 files, thats a minimum of 128 kilobytes of memory used right there. Now, how slow do you think your sd card could load 256, 512 byte files? There are lots of factors to take into consideration here. Of course, increasing the icon resolution would increase the memory requirements, unless it is scaled upward in software, which won't look too amazing.
So make sure to keep such thoughts in mind with your menu designs as well. I only have 30 megabytes of ram to work with here, not the hundreds that other touch screen devices have.
I'm not saying these ideas are bad, its just we also need clever ways of applying said ideas within the design so that it appears possible within our hardware restraints.