i have a stable of 3 bikes that i commute with, one of which is a 2007 Dahon Speed P8 folder (20" wheel).
my folder doesn't get ridden as often as my fair-weather road bike or my foul-weather hybrid, but it does come in handy when i have after work commitments that don't leave me enough time to get home first. today is a perfect example of a time when i ride my folder. i have dinner plans tonight at a friend's house and i will be heading there straight from work and meeting my girlfriend who will be driving straight there from her job (she's not a bike commuter). after dinner i can simply fold up my bike and throw it in her trunk and we'll drive home together. this is ideal because she is a very light drinker, and hence a great DD, whereas i have more than a small inclination for drinking

.
my folder is noticeably slower than my other two full-size steeds, but it does come in handy when i have to rendezvous with my girlfriend somewhere or when i have to be someplace where i would otherwise have to street lock one of my other rides (chicago is one of the capital cities of bike theft and i hate leaving a bike unattended on the street). my small 20" wheel folder can always be folded down and brought inside the vast majority of places that i go to.
in a nutshell:
folder advantages - maximum
FLEXIBILITY. i can go wherever i want without forcing one of my other bikes into the role of thief-bait. i can hop on an el train with it at any time i want (like getting caught in a storm). i can throw it in the trunk of my GF's car or a taxi whenever the need may arise.
folder disadvantages - it's marginally slower, has a less comfortable geometry for me, it's not as rugged and robust as my other rides.