To state the obvious, only because it hasn't been clear, a napkin is dirty and shouldn't be handled by a server, or vice versa, hence the tongs. Either the folding with a servers hands or tongs, it's meant to show that you are being looked after. What I do is just fold it myself to leave the table looking neat, and of course touch everything with my grubby hands on the way to the loo while picking my teeth with my finger nail.
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