NoobAndroid
Lurker
How come? what would have happen if the phone freeze? you know, it would be possible that your phone freeze, then what can you do? you can turn it off, you can't restart it, you can't hard reset it, then what would you do?
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No you can't install apps on your SD card. This comes with Android 2.2 and as recently announced none of the current Xperia phones will get anything more than 2.1.
There is an app called Apps2SD but I think you have to be rooted to use it. In fairness I have the X8 which has the same size memory and have loads of apps installed with no problem, in the region of 30. I don't use the phone for major gaming just AngryBirds and Wordfeud so the bigger games may be a problem on the phone but I don't know enough to comment.