Toyota says every 5,000 or every oil change. This a good standard to keep or is it not worth the extra $20?
Since the fronts take a different pressure than the rears (at least on the 17" wheels) you should reset it after rotating and filling with the correct pressures.
Not necessary. The front tires wear faster, but that's fine because it's safer to have the less-worn tires in the rear to reduce the chances of fishtailing. Let the front two wear out, then move the rear two to the front and put two new ones on the rear. Note that this does not reduce the total life of the tires. If uneven or unusual wear occurs on tires it indicates that they are poorly balanced or that there is a suspension or alignment problem. Any of those conditions should be repaired; merely rotating the tires only masks the problem.
I don't agree on NOT rotating the tires. The fronts steer and power, the rears are just along for the ride and with the power of the Prius, I wouldn't worry about the rear end passing the front. Severely worn fronts on the other hand will be handful when the weather turn bad. Just my $.02
I will change to a different type and brand of tire when the originals are worn out so I like to have them all 4 wear out at about the same time. I also want the same brand and type of tire on all 4 corners. But rotating tires every 5K miles is not necessary and as Richard S. said above it can mask suspension/alignment problems. I plan to rotate my tires at about 10K miles and then again at 30K, when I reach 40K they will all have spent the same amount of miles on the front and back. At that time if there is sufficient tread left I may move them round to finish using them up. I replace them when I can't see George Washington's head on a quarter or when some kind of defect shows up.
Cross-rotating the tires is also important for even wear. Although it isn't directly applicable to the Prius, a tire rotation is an opportunity for a brake inspection. On most cars, this is important.
My .02 The 5K tire rotation is akin to the Prius 5K oil change. But now IMO - overkill - and an wonderful way to pad the cash register at the Service department. 5K rotation worthy in the 70s-80s with poor suspension and tires. As with shampoo makers - "Rinse and Repeat again" - doubles profits. Unless it's included at a reasonable cost during an oil change, I'll plan a DIY about every 10K miles. Nice opportunity to look around each wheel well and each corner's wheel/brake components.
Rotating your tires often is very good - the only question is: is it good for your car or your dealership? Some carmakers (like BMW) recommend against it. Since rotating every 5,000 miles means 9 rotations in the average tire lifetime of 50,000 miles, that comes out to $225 assuming 25 bucks a shot (maybe $275 counting lost interest on your money). The small additional tire lifetime is not going to recoup that amount. Then there is the extra waiting, the resetting of your pressure sensors (since front and rear pressures are different), etc. Maybe rotating 2-3 times in the lifetime of the tires is reasonable, but if you keep them at high pressures, you won't have anything to worry about. This is just MHO.
Depending on what tires you have I'm guessing you may never get to the second rotation. I'm hopeful, but doubtful, that my 17" Bridgestones will ever see 30K miles. My TCH tires wore out at 24K (both sets) before I switched to Michellin's.
I sure wouldn't say you are wrong, but I hope you are. I too know wide low profile tires can wear out in a hurry. The Dunlops on my BMW didn't even last 20K on the rear, fronts would have lasted about 30K. They were different sizes front and rear and directional so no rotation was possible. My Prius has Toyo Proxis A20 and I have no experience with them. Tread wear is only 300 so I don't expect to much. When they wear out I'll most likely go to Michelin Pilot Sport A/S, I had a set of them and they were very good.
I don't understand why people rotate tires on a pre-set schedule. One can see the condition of tires (tyres) visually. Do it when necessary. Save money rotating them unless you DIY and you see that as an exercise.