I always button up. One of the posters is correct that this is against "land etiquette". However, I make an exception when aloft because even the upright seating position in F makes it difficult to get that forward incline that would make the chest placement of the napkin necessary.
I have noticed that many flyers want to do this but are embarrassed. Quite often I travel in F from DFW to LGW on business and I normally am the first one to do it. However, more than once, I have seen other flyers see me do it and follow. I guess when they see a mid 30s man dressed in a suit and sitting in F doing it, they dont feel so foolish...