@tigertiger, Chinese does NOT have a lot of words and nearly every foreigner that starts studying Chinese complains that everything sounds the same. What you probably mean is that 是 is one word with a distinct meaning, while 时 is another, which I recognize. However, both words sound the same except for differences in tonality. The only way to recognize the differences is a keen ear, or failing that, being able to read the characters.
A better example would be where you have words that have the exact same pronunciation and tonality, but have very different meanings. In that context, sure Chinese has plenty of "words" but it doesn't have plenty of distinct, non-homophones. As mentioned, Chinese has a mere 2,000 distinct words. I'm not sure how many distinct words English has, but it could easily be in excess of 100,000. Even Thai has 20,000-40,000+ distinct, individual words, because unlike Chinese, Thai is at least able to borrow freely from foreign languages for loanwords.
Although my Chinese is still rusty, I am fairly certain that there are only a minimal number of loanwords in Chinese because the limited number of sounds means most loanwords would be impossible to transcribe. Even the loanwords that Chinese has taken on don't really sound like the original. It had to be pointed out to me by my Chinese teacher that the Chinese word 幽默 (you mo) comes from the English word "humor" or "humour" (British spelling). To me, youmo sounds nothing like humor whereas even somebody with no knowledge of Thai would be able to recognize that คอมพิวเตอร์ (com pew toer) means computer just by listening to a Thai speaker say this word.
I therefore strongly suggest at least getting some knowledge of the most common Chinese characters (perhaps the 300 most common should do). Learn to recognize them, but if you don't want to spend time writing them, then don't. However, don't make the mistake of assuming it's easy to get by in China illiterate in the Chinese writing system. Given Chinese is perhaps the most homophonal language in the world, great confusion and difficulties in communication can occur if you just rely on the spoken language. Thai, Lao, Vietnamese, English, German, French, Spanish etc. can all be spoken and understood without an absolute need to be able to read or write them, but using the same approach for Chinese is difficult to say the least.