This is something we certainly need. With those big pages of Apps loaded on our iPhones it was a delight to have folders to classify and sort all those apps.
Unused apps folder (Topmost left)
Categories via Cydia let you create folders and store apps inside them. So I would now go ahead and order those dozens of apps on my iPod Touch and our iPhone in different folders like Games, Utilities, Fun etc.
The main screen of the App lets you create folders and edit them. You can then enter any folder and select the apps you want to put in them. The app is easy but crashes at times. However, there is a recovery feature that lets you continue from where you stopped.
To download this app search for ‘Categories’ on Cydia
Cydia is an 3rd part apps aggregator / store, that Installs on Jailbroken iPhone 2G / 3G/ 3GS and iPod touch