Hello,
wow, that quote from Jeff is from a long, long time ago.
I consider the default workflows Alfresco provided / provides as merely examples and the UI built to support these examples, with very little creativity in regards to "what actual workflows require".
The "only" limitation the Alfresco Share UI imposes is that you can not really select folders as "packageItems" and that the "Start workflow" action is not available on the folder level. The last part can be fixed by configuration, the first part by ignoring "packageItems" (provided just as a default way of handling workflow contents) and using your own workflow data model.
We have implemented workflows based on folders going back the same year Jeff published his blog post. We typically use the workflow data model to define our own semantic properties / associations for contained elements - be they folders or documents - and almost never use "packageItems". No modifications to Alfresco were necessary - all could be provided by regular configuration of the process definition, data model and form definition.
In Community 5.0.b the Explorer UI was removed, so a lot of the old workflow-related blogs do not apply when it comes to source code examples. Folders can still be used as workflow packages - the relevant WorkflowService provides a createPackage(NodeRef) operation which can take "null" or a valid node reference - if a folder reference is passed, that folder is "promoted" to a workflow package.
Regards
Axel