The height of the rider is determined both by how high the lower pedal is off the ground at its lowest point and how long the rider's legs are since most people adjust their seat height so their legs are almost straight at maximum extension. No reason for either of those to be different on a folding bike as compared to a non-folding one, and there is no noticeable difference in my height when seated on my Bike Friday Pocket Rocket vs. my 700c bikes. Nor is there any difference in the speed of my commute - which is usually on the Bike Friday even though I don't need the folding feature (but it's the one that normally has a rear rack already attached and is therefore more suited). Rolling resistance of smaller wheels is a bit greater but air resistance of those wheels is a bit less so it tends to balance out. Yes, on very rough terrain the bigger wheels can be an advantage, but my urban commute is not over that kind of terrain.

I don't really see the intended niche for the design on the OP. The folded bike looks too big to be taken inside crowded buses or most other urban mass transit vehicles that wouldn't allow regular bikes and the unconventional geometry would make it a poor riding choice compared to either a regular bike or many of the better folders already on the market.