django app organization
They don't have to go in views.py. They have to be referenced there.
views.py can include other files. So, if you feel the need, you can create other files in one app that contain your view functions and just include them in views.py.
The same applies to models.py.

Django apps lets us separate common
  functionality into different apps and
  keep the file size of views and models
  to a minimum? For example: My project
  can contain an app for recipes
  (create, update, view, and search) and
  a friend app, the comments app, and so
  on.

I don't know about the "to a minimum" part - some apps are just big in views, others big in models. You should strive to partition things well, but sometimes there is just a lot of code. But other than that, this is a fair summary of Django apps, yes.
I have been reading some django tutorial and it seems like all the view functions have to go in a file called "views.py" and all the models go in "models.py". I fear that I might end up with a lot of view functions in my view.py file and the same is the case with models.py. 
Is my understanding of django apps correct?
Django apps lets us separate common functionality into different apps and keep the file size of views and models to a minimum? For example: My project can contain an app for recipes (create, update, view, and search) and a friend app, the comments app, and so on.
Can I still move some of my view functions to a different file? So I only have the CRUD in one single file?