My new cleaning lady used to work in hotels. She folds the corners on the ends of the toilet rolls.
Actually, as neat and tidy as it looks, I would definitey not take this approach with the bedlinens. A previous cleaner used to iron them and then fold them into tiny little parcels like this. They look great in the linen cupboard and terrible on the beds. What is the point in ironing them only to add a zillion folds?
Luckily, my linen cupboard is deep so I can store stuff in there without having to fold it too many times and pillowcases are laid flat without any folds at all. The linens are arranged in sets by room, not separated by type. That way I can just whip out everything I need to turnover a room instantly.