For those who can’t lok up the Aruch Hashulchan, he explains that there are two reasons brought in the Rishonim:
1) Tikun
2) Hachonoh
He says that in our times, many do fold their talisos, because they hold only of the issue of tikun, and the folding of our talisos does not involve a tikun.
He brings support from the KolBo, who defends the practice of folding clothing, because we are no longer very makpid on wrinkles, as was once the case.