But that's the point. Sure some are annoyed that it can't be put into a folder (I've read that it can't because it IS a folder, and Apple currently doesn't allow folders within folders, but that's a whole other discussion)...
But beyond that annoyance, I truly doubt that the majority of iOS users even care. They can ignore it, move it to the last page, or whatever.
I'd be interested in seeing actual numbers - doubtful that "thousands" actually jailbreak JUST to hide the Newsstand (and yes, there are TWO 's's in the word)... Of course, we all acknowledge that 83.4% of all statistics are made up on the spot to support the person's perspective.
Gizmodo, Engadget, CNET all had an articles on it. How to put newsstand in a folder News, Videos, Reviews and Gossip - Gizmodo
How to hide the Newsstand icon on iOS 5 | How To - CNET
Even good ole iMore had a article on it. How to put iOS 5 Newsstand into a Folder [Temporary] | iMore.com
Everyone wants it hidden.