To the best of my knowledge, yes, screen brightness does drain the battery.
Personally I have the screen brightness on my HTC EVO manually set to about half. When I am outdoors for an extended period, however, I set the screen brightness to Auto so the phone will adjust the brightness fully up when I am in the sun and adjust it down slightly when I am in the shade or go indoors briefly.
So my personal suggestion is to manually set your screen brightness to the lowest level you can comfortably see it indoors and at night, and then switch to Auto Brightness when you are outdoors in the sun. You can the switch it back to the lower manual setting when your are indoors.
Also as a best practice for getting better battery life is only using the various antennas when you need them.
I suggest turning of unneeded antenna manually. For example, when you are at home using WiFi, shut off your 4G antenna. Conversely, when your are away from WiFi, shut off your WiFi antenna and only use your 3G/4G antenna.
Also only keep your GPS on when you are outdoors, and only keep your Bluetooth antenna on when your are using a Bluetooth device.