Not only can you finally put Newsstand in a folder in iOS 7, but a newly discovered glitch also makes it possible for users to place apps inside Newsstand.
Dom Esposito at App Advice discovered the new glitch this morning which makes for a great way to hide the default apps you never use. To get an app inside Newsstand, simply press and hold an app icon till it wiggles, then drag it above the Newsstand icon, after a second or so Newsstand will blink and you can drop app down into the Newsstand folder.
The only way to get apps out of Newsstand afteward is to either delete them, or reboot your iPhone.
Here’s a GIF of how it works: