ok a) does it really look THAT good??

I think it would look good on those with short leather mini skirt and fishnet stockings

b) when u fold the heel up..aren't u gonna be walking on it so it could get all scuffed and covered in mud..?

Your not walking on it, your using it so that you could drive properly

c) doesn't it mean that the heels aren't be as strong, which could pose sum problems maybe?
imho jst keep a pair of flats in the boot - problem solved.

I'm sure they would have thought of it, and made it stronger.
As for keeping a pair of flats in the boots? It would save far more time and conveniece to fold the heel in than openning the boot and change shoes