Reading up on Django methodologies
DjangoCon 2008: Reusuable Apps
You can click on the lnk above to see the video about how Django apps should be designed. This was really enlightening for me as it further reinforces when and what applications should be in Django. Rather than be monolithic feature set, there should be an application per feature of your application.
The examples given in the video were an application for user registration and a seperate application for user profiles. James also says that a typical "simple" project should have at least a dozen applications instead of just a few applications in the INSTALLED_APPS list.
Unfortunately for me, the series of tutorials I'm making for Django chat does not follow this philosophy. I'll still continue with this route for now, but sometime further in the future, I'll consider rewritting it and rewrite it.