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Hi there.
Beautifolders (free on Cydia) addresses the issue. I'm so happy someone managed to find a way to theme those folder icons according to the folder names you set !

well, you still have those ugly little icons in every folder. i think the ts wanted to get rid of those. as of right now I'm trying to do that myself but didn't find a way yet
 
Springtomize 2 for iOS 5 and up or Springtomize for all lower iOS's (A Paid App on Cydia) will take care of what the OP and others have requested.

Open Springtomize, select "Folders" and then turn "Hide Preview" to "On" and respring. All mini icons in folders will be gone and you will have just a blank folder icon.

The icon is changeable by sshing and creating a Bundles Folder in themes. Then create another folder inside bundles labeled: com.apple.springboard. Inside that folder place your new folder icon that is 120px X 120px. Label one FolderIconBG.png and a copy of it FolderIconBG@2x~iphone. Activate in Winterboard and all your folder icons will change after you respring.

Have fun;)
 
FolderIcons removes the mini icon previews by default AND allows you to set different images to suit your folder names. Beautifolders allows to prevent the mini previews to appear too but requires editing plists to apply this effect. SSHing without Beautifolders nor FolderIcons will only allow you to change ALL folder icons to the ONE image you name FolderIconBG.png & FolderIconBG@2x.png...:rolleyes:
 
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