In regards to finding work after your 4 years, it is really difficult, because you need to have 2 years supervision under a Psychologist before you can call yourself a registered psych (keep in mind this is unpaid work). So basically, when you come out with your Honours, you still aren't anything in the psych world. This is why most people go through the Masters/Doctorate path straight after (or pretty close to) finishing their Honours. The alternative is you can pay a college a few thousand and they will get you your work experience. Or, you can do what my partner, Skittled, is thinking of doing, and joining the Army as a Honours psych, because they pay you and give you the 2 years supervision, but you have to be with the Army for 4 years or something. A good idea if you are interested in Org Psych, but you wont get anything from it if you want to follow clinical, neuro, forensic or anything like that.
My plan is to join the Federal Government in an intelligence/analyst role for a few years, get some money together so I can fund my Masters (or, preferably a Doctorate because its free!), and then get into the psych field. I want to eventually come out and be a qualified Forensic Psych, so I can join my psych and law together, and still work with the Government in the Correctional area, or in a more clinically area.
Re: Theory vs Prac, it really depends on the area of psych. Things like Perception, cognition, bio - things you can actually grab at and witness - are more 'sciency', but of course they have the theory behind them. Then, there are things like social which is a combination of the both, and personality which (to me) is more theoretical. I prefer the more sciency ones, personally (although they do tend to be more difficult and full-on studyload-wise).