I think, as one of you said, covering up teh instruments when I get more advanced would possibly be a good idea, and I will suggest it to my instructor.
You'll find you don't have to suggest it to your instructor, but he will nevertheless do so in due time. Although he'll probably be covering up the ASI, ALT and possibly MAP/RPM instead of the AH. After all, judging height and speed is far more difficult than judging where the horizon is on a VFR day...
Another twist to this, what are your thoughts on the use of full flap to take off when on a touch and go???
In most aircraft it's not a good idea as climb performance is pretty marginal with full flaps, and you run the risk of "ballooning" due to the propwash underneath the wings. During the "touch" phase of a T&G you should be configuring the aircraft for take-off as per the POH. That typically (but not always) means no flaps or 1st stage flaps.
Remember that a T&G is a pointless procedure in the normal course of a normal flight. It's only used so you can cram more practice landings and practice take-offs in a single session because you're re-using kinetic energy, and don't have to taxi-back. But a T&G is only an effective training aid if you approach it as three separate stages:
1. Perform a normal landing, in the normal landing configuration (or whatever abnormal/emergency landing configuration you're practicing).
2. During the roll, don't brake any harder than necessary to get below flying speed. Now reconfigure the aircraft for a take-off just as you would do at the hold.
3. Increase the throttle and perform a normal take-off (or whatever type of take-off you would be practicing, ie. short-field).
So if you would not be performing a full-flaps take-off from the hold in your specific aircraft, what would be the point of ending a T&G with a full-flaps take-off?
Having said that, there is another procedure which is not practiced as often as the T&G, and that's the go-around. If the go-around happens rather late in the landing phase, you're almost certainly at full flaps. So you're confronted with an aircraft that is descending, is in high-drag configuration and possibly with carb heat on as well. You've got to arrest the descent and convert it into a climb, reduce the drag without losing control and make sure the engine is developing full power. All in a very short period of time. Arguably a greater challenge than a T&G.