Rooting is not as frightening as you might expect. It's awesome!
I used this guide here:
HTC Desire - [GUIDE] Rootin & Flashing ROM
And flashed the ROM "Leedroid", which is exactly like the HTC Desire sense interface, but it's already running with android 2.3, and a lot of things have been improved. Battery life, speed, less lag, optimised, no adds in apps, sharp 3D gallery, etc.
Also I now have 300 MB free for apps.
After the phone it rooted, you can get Titanium Backup, and do a backup of everything on the phone! So you get all your apps and their data, and settings, system data, placement of apps, etc., back to how they were.
Using this site:
UOT Kitchen
I've further customised my phone. It gives a nice colourful battery circle in the notification bar, with percentage, but there's more!
It also gives the option to get real smiley emoticons, and totally change the notification icons. There are many sets to choose from, I chose one called
Color pack v4 animated, which is awesome looking.
Also, there's the ability to personolise the drag-down notification bar, in many ways, change the boot animation (many to choose from).
Finally you can change the window animation to four new ones.
Here you can see how that looks like:
(I'm using the first one, flying).
http://www.youtube.com/watch?v=craNDI-XWos
http://www.youtube.com/watch?v=pMNNCjvxyY8
http://www.youtube.com/watch?v=-zodBUQEUDs
http://www.youtube.com/watch?v=dqrBF0TE3Qk