Tonight my HTC Touch (upgraded to 6.1) unexpectedly FROZE and after trying to soft reset several times I got the screen that said "will revert to previous state, press send" (or words to that effect)... I pressed send (having no other choice) and sure enough... I was back to ground zero with a functioning touch, BUT I'd lost all my contacts, settings, programs I'd added etc. I was back to the day I bought my Touch and upgraded to 6.1.
I won't bore you with my two hour frustration -- but here's the happy ending: my backup worked! Fortunately I had used a backup app (it was Sprite) and had done a full backup three days ago. Whew. Now when I get my bluetooth connection to my desktop fully restored, I'll be back in business.
Moral of the story?
GET YOURSELF A BACKUP PROGRAM ... and... USE IT!