I think it's the only APP on my phone that I can't put in my "I never use" folder...
wtf?
See here for putting Newsstand in a folder.
You can add it in the folder.
Drag another app into the folder and while the add animation is going, quickly slide the Newsstand app in. It will go.
Newsstand will crash when you try to open it after doing this though.
Newsstand is a folder.