I had exactly the same problems with my Touch freezing when I first got it. It happens much less now, I think because I don't navigate around so quickly. I was handling it a bit like an iPhone at first which was overkill.
For the past 4 months or so I've had problem with my battery draining very quickly (from 2 days to a week). When I first got the Touch I was getting 2 and a half weeks out of it between charges. I've removed most files, thinking there was a faulty one, but the battery can still drain quickly. Not every time, it will go for 2 weeks, then the next time only a couple of days. I only use the reader for an hour at night max.
Should I try removing all books then do a soft or factory reset? Will this reset the firmware back to what it was when I bought it (I don't want to do it if this is the case)?