Google-docs – right to allow suggestions but permit edits in google documents

Is this possible in Google Docs?

Yes, it is.

With keyboard shortcuts

1. Ctrl+A
2. Ctrl+Shift+, (that's the comma key)

With menu commands

1. Menu Edit → Select all
2. Menu Format → Font size → Decrease font size

This isn't an error. This is how Docs is setup.

It isn't possible to share folders through Google Docs, I don't know their reasoning for it, but I do know that it's impossible.

I think their reasoning is that you may have a different organizational system from the person you're sharing items with, so folders are personal settings. There may be a programming reason for this as well that could involve how there databases are setup, but I don't know.