I'm afraid that is right. Newsstand has always been some kind of hybrid between an app and folder, behaving a bit like each. With this iteration it's gotten a bit more folder like, with one exception. It doesn't even appear in the multitask bar anymore. Unlike other folders there is no space around it to tap and exit the folder, so you end up having to use the Home button. Or you could use the four finger swipe up to go to the Multitask bar.
The exception? It's a nice one. You can now put the Newsstand icon in a folder.
Hold in mind I've only been playing with it for a while, so it's possible I missed something.