I am still finding practical use of folded indented bullet lines awkward. The folding process using the edit menu is reasonably consistent and unfolding using the ellipsis (when later reading through a note) is intuitive and quick. However, refolding an unfolding by going back to the edit menu reduced folding functionality significantly (for me at least). Something more akin to a toggling (on/off) would be my hope.
We understand your and other users points about the current folding implementation and we are trying to find an alternative solution for both headers and lists.