Folders are one of the big new features in iOS 4.2 for the iPad. I’m running the first IOS 4.2 beta on mine right now – and I’m happy to see that not only are folders working nicely (and letting me reduce my home screens from 8 to 4), but they also allow 20 apps per folder.
Much nicer than the measly 12 per folder that we’ve got on iOS 4 on the iPhone right now. I’m not sure if this is a change that will apply to both devices under 4.2 or just to the iPad because of its larger screen. In any case I’m glad to see the higher limit and would love to see Apple increase it even further.