You're correct, jbuck. I'm leaning toward folders to continue encouraging my daughter with the hobby.
Regarding the concerns listed above (caveat, I'm not talking about coins of any significant monetary value here):
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1. You can not see the reverse of the coins
The folders I've looked at tend to have an open slot to display the opposite side of one representative coin. I don't need to see the wheats of every cent we own, nor the identical obverse of every state/ATB quarter.
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2. You or anyone can touch the face of any of the coins in the Folders.
My wheat & memorial cents have been sitting in tin cans for years (or even decades in the case of a bunch recently gifted to us from my uncle) after many prior years of circulation. I'm not afraid of fingerprinting a well-circulated penny.
For the statehood/ATB quarters and
Presidential dollars, my 5 year-old can understand "don't touch".
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3. Worn coins have a tendency to fall out since the slots are intended for newer coins.
This may become a concern for some of the older cents I guess, but my quarters &
Presidential dollars are all close enough to new that they should snap in, methinks.
I can always use some Elmer's glue on any loose cents (I kid, I kid).
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4. Most manufacturers of any Folders use mass production methods which include plastering glue on a sheets of paper and then the slotted cardboard is placed on that sheet.
This means that some of lots of the glue is seen in the slots. Moisture can activate that glue and corrode the reverse of coins
For the relative value of the coins I'm talking about here (most of which aren't worth much more than face or 2x face at best), I say "meh". I'll save my money to buy a safer solution for the coins with real value like our type collection, silver, etc.
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5. Leaving any coin Folders or Albums on a shelf in plain view is not smart. They could have a tendancy to vanish
...and they have a tendency to be in a dark isolated location and never enjoyed by myself or my daughter if I pack them away.

I want to be able to pull these out and talk about them with my kids from time to time. Point taken, though, I shouldn't put them on a bookshelf outside my front door or something.
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6. As to the Quality of Folders, always check for how old they are. Some of the older ones of any company could be made worse of better than modern ones by the same company.
My hands-on experience tells me the current Littleton or Harris are pretty nice & sturdy enough for my needs.
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7. Folders also allow excessive moisture from your breath each time you open one.
8. Even a sneeze or cough while looking at your coins could allow something to hit those coins.
See my reply to #2. I don't even want to know the environment exposure these cents have been in over the years. A breath or cough is probably pretty minor, relatively speaking!