We have been paper towel free for over a year now. We definitely do not have enough cloth napkins, either that or I don't do laundry frequently enough

thanks for the restaurant supply tip- our thrift store prices are ridiculously high and I never seem to find any napkins there anyway, so I'll have to check out the restaurant supply store.
we've been using just a small trash can for dirty kitchen laundry- I like the idea of the mesh laundry basket though as we do get some funk going on in there after a while.
on the draining bacon... I had an epiphany the other day (we used to use paper napkins left over from take out food, or would just stand there letting them drip from tongs forever if we didn't have any paper napkins) but I realized that the rack that comes with our wok works great. Any sort of rack, like a little cookie cooling rack, over a plate would probably also do the trick.