Yeah Setcpu would help a bit.
If you're gonna finkle and battery (actually, a pretty damn good balance) is your priority-
CyanogenMod 7 has in it's options a menu to set the CPU governor. You would force it to "ondemand". Performance is pointless and the others are lacking compared to ondemand. 'Smartass' would be better if it didn't introduce a 0.5-1 seconds delay when unlocking your screen if your CPU is idling at 128mhz.
Kernel dependent:
Minimum frequency: 128mhz
Maximum frequency: 1.2ghz
If it's a snapdragon @ 1ghz. OC to 1.2 is safe, if your device disagrees with it, it'll let you know promptly.
When shopping for a kernel, look for the following patches/features:
HAVS -- hybrid adaptive voltage scaling. This allows the frequency and voltage to be scaled independently. The table would look like 925mV at lowest clock and 1350mV at overclock ranges, but whoever is developing for your phone will know.
If your phone is unstable with the above, there's also SVS, static voltage scaling. But HAVS is optimal
AXI -- this uses a higher AXI bus while the screen is on, lower when off.
Something that turns your wifi off automatically after the screen has been off for X time.
With those, your idle battery usage will be close to nothing. I'm talking StarTAC class of battery life even though I don't know how long those lasted.
Other common stuff:
CPU scheduler:
BFS -- brain fuck scheduler, prioritizes userspace applications and overall aims for a "smooth user experience". I don't see it on Android but I do use it on my computers. I don't see the point on droid. It's also default in CyanogenMod

CFS -- completely fair scheduler, the default in the linux kernel. Schedules the cpu for equal clocks over a period of time for running programs. If a kernel dev is supporting BFS then he will probably have compiled packages for CFS also.
I/O scheduler:
CFQ, completely fair whatever, usually the default on linux. HOWEVER if the dev says something about cgroups, then CFQ it should be. That means the "200 lines patch that does wonders" is in there and it should be pretty good on a droid.
BFQ, pointless on android
No-op, this is usually my pick, it's simple and fits well with the device's whole it doesn't have a hard drive situation
Deadline, has been shown to perform better with SSDs. Flip a coin and pick one.