This would be why I own a folder. I do have a cable lock, only for locking it where I can see it for some cafes. The Dahon Speed P8 will go most places, and I'm seriously thinking of getting a Bike Friday Tikit because it's got considerably more flexible (and stealthy) portability.

I think the small-town factor will protect you a great deal compared to the U-Lock you choose. The general motto in all of security is that if they really want it, they'll get it. On the other hand, you probably know the story about the two guys being chased by a lion: "we'll never outrun that animal!" "I don't have to--I just have to outrun you." Same thing in security. If a similarly desirable target is more available, they'll go after that. Brutal but true; thieves certainly aren't in it for the principle of the thing.

Good luck with hanging on to your baby. I've been lucky so far myself (knock on wood).