Originally Posted by
Reason077
The reason for that is probably technical rather than just Apple wanting to shove newsstand in your face.
Newsstand is really just a special type of folder in the app launching interface (aka Springboard) where the apps (publications) inside it can be subscribed to and update automatically each day.
Since you can't put a folder inside a folder in iOS, and Newsstand is a folder (more or less), it makes sense that you can't put Newsstand in a folder.
You can move it to a folder. The method is to create a folder the usual way by moving one app on top of another one. Then very quickly while this new folder is being created drag Newsstand to this new folder.