The S&S connectors require a tool to break down the bike. While it does make for a compact travel package it's not really in the same convienience league as a folder such as this Dahon.
Your best bet for wheels is to stick with what you have and check the width of the rim to see if you can sneak on a 26x1.0. Likely you can since the wider MTB rims are almost all intended for light to heavy jumping and the extrusions used for less demanding riders are all the same extrusions as used by a lot of road bike rims.
For commuting I can heartily recomend Panaracer Pasela TG tires in 26x1.25. They seat on the rim with a decidedly egg shaped fit where the point of the egg is the tire tread. This produces a more narrow road interface more in tune with what you'd get from a 23mm road tire. And the TG (Tour Guard) kevlar belt really does reduce or eliminatee flats.