Motorola Droid X :: Uninstall / Freezing Application - Factory Reset?

I saw a thread where a user removed several apps after rooting the droid x and then successfully did a factory reset. I proceeded to remove the same apps using Titanium Backup. Before doing so, I saved the whole system/apps folder to the sd card in case i wanted to reinstall any later. I figured the reason these apps were installed in the system folder is so users couldn't touch them (assuming they weren't rooted). So just as a test, I tried reinstalling CityID using Root Explorer, and it installed it in the data/app folder (which uses the 8GB of internal memory). 1.) Can we effectively uninstall all the apps from the system folder and then reinstall them manually onto the 8GB of internal memory using root explorer, so we are no longer using our RAM space? 2.) Anyone feel brave enough to try doing this with a factory reset to see what happens? 3.) Another question I've seen asked and not answered is whether 'freezing' an application with Titanium will cause any harm with a factory reset (for something with a known issue like Backup Assistant), or would the app be re-enabled since the factory reset would blow away Titanium?