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They do show it folding shirts, which I'd think are harder than blankets.

Is your doubt caused by blankets being bigger than shirts?

(I didn't see it folding a button-up shirt, only tee-shirts. That's an extra degree of difficult and I do doubt that it can do that.)

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I think blankets are harder simply because of their size. I often have to "whip" the blanket to get the other end to properly fold on itself. I also use a much large space because of the size (often the floor). Could a robot fold a big blanket? Probably? But what is the success rate going to be? If I just have to refold it 50% of the time, is that actually worth it?

Yeah, again the WYSIWYG model of AI: if you see a robot folding a shirt, that robot can fold that shirt. Maybe it can fold another that's very similar, maybe only different in colour, but don't bet your money on it.

A robot folds a shirt and you think it can fold a tee? Not unless it's explicitly trained to fold that one tee, too.

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