So I'm still not clear - should we press the back button when exiting an app or is pressing the home button fine?!
It very much depends on the application, and how it was designed. Let me rephrase that: it depends on whether or not you're done with it.
If a given app has implemented state-saving, then it won't matter because the app will continue where it left off (say, editing an address book entry, then going out to an image app to adjust and set an image, then going back and finishing the contact). OTOH, many games immediately discard their state when you switch away from them, and return to the "Insert Coin" screen (as it were) when you return to them.
The stock browser is a good example; you can usually browse away and then continue it later, but if you do "too much" in between you will find your session has been reset. That's an example of state-saving, and discarding state, by the same app.
However, if you choose to "back out" of the browser (and you may sometimes experience a very
long way back), your next session will
definitely be a fresh one.
That's why I keep saying that choosing the BACK button amounts to telling the OS "I am done with this", and choosing the HOME button amounts to telling the OS "I
(may) want to return to this in a while".
There's a difference to the application you're doing it to, but other apps (including the OS) should not need to care. You might view "available RAM" as a measure of "wasted potential".