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I wouldn't be so sure! While an MOT able or needed item is required to work, puting it in a position where it can't ought not be against the law. I'm pretty sure some cars park with the mirrors folded in, and if on the public highway - this would also be illegal.

I'd not worry, it would be an amazingly pedantic and well informed police officer that took an interest - probably one who was throwing the book at you for failing the attitude test.

I appreciate what you mean about not seeing behind you at night but if someones poorly adjusted lights distract you from concentrating and seeing what is infront of you then folding the mirrors in is I feel the lesser of the evils

folding mirrors (that you can fold when moving - I've never seen that before)

They don't all fold in/out based on ignition switch off/on - mine aren't automatic so there's a button on the door - I do use it on the move in very narrow roads - to avoid it being belted by oncoming traffic.