"Microsoft may have determined that very few users were interested in arranging icons manually, other than on the Desktop. When I search the topic, I get many hits on arranging Desktop icons, but next to nothing in regards to arranging icons within folders. It never appeared to be a hot topic. It's obviously super important to you. It just doesn't appear to be important to a lot of other users."
I don't know who Microsoft talked to to determine most people don't use icons in folders - I know they didn't ask me! Why would they take away such an option! I also find it EXTREMELY frustrating and wastes precious time every day. Just give users the option and let them decide how they want their folders to look!