I know I've had this discussion before with someone, but no idea where.
Basic conclusion was no code folding - see
http://blog.codinghorror.com/the-problem-with-code-folding/ for some reasons. Essentially it bloats code, and hides code smells - if you have 6 different sections of methods that handle 6 different things, perhaps you should actually have 6 classes? If you can only make sense of them within a named region, perhaps the method names need improvement?
Additionally, there's no common standard in Java for code fold structure, so we cannot maintain cross-IDE support.
IntelliJ already supports a fair bit of code folding for methods, blocks, anonymous inner classes and one line methods. I think we should stick with that.