Folding the Bike
I too haven't been to impressed with the size once it is folded. It can be quite awkward. I have had limited experince with a Dahon and the folded Dahon seemed similar. Much smaller than a regular bike but a bit awkward.
I have felt that in its folded mode it is not as slick there as I had hoped.
To help resolve your question perhaps you can rotate the stem around a bit and run the handle bar parallel to the frame.
I had swapped out the treadless stem for a 15cm (150mm) stem for ride quality. After seeing what that does to the fold, I would consider going with a 50 or 60mm stem and that would improve the compactness if that is what is most important to you.
Probably not the best answer but I though your question deserved something.