This topic always seem to pop up once a month. Before moving on, perhaps you need to ask yourself the following questions (not in any order):
What is your knife fighting style?
What is the strategic role of the folder?
Why a folder?
What are the legal implications?
These are just some questions to ask off the top of my head. One of these days, maybe somebody will make a FAQ on this or something.
For combat use, these are just some of my personal observations. And please bear in mind that this is a gross generalization, not including specialized preference and fighting styles. That being said, plain is better. Why? My personal, unscientific tests have shown a well-kept plain edge will cut just as well as serrated. Again, it just has to be kept razor sharp (hence, the belief in having two knives, one specifically for combat use, and one specifically for utility use, but that's another story). But the bonus to the plain edge is that it will not catch on loose clothing like plain edge, nor does it require as much energy. Passes are smoother and slicker, making them quicker in recovery. And in knife fighting, speed is everything. And yes, serrated blades will slow down tremendously, maybe even come to a halt, when it hits bone.
Besides, if you're talking about folders, which for the most part, are blades that are 4 inches or less, cutting isn't going to be as effective as stabbing. But that opens up yet another huge can of worms or two. But the point is, if you're stabbing is the meat and potato of your fighting entree, serrations won't do you any good here.
As you can see, this is a highly complex and controversial topic. And in many aspects, even experts seem to disagree with each other. You know, this reminds me of the debate about shotguns vs. handguns for home defense. Both are equally adequate in getting the job done if you know what you're doing. But it's when you try to split hairs, that's where all the controvery comes in. In this case, the question of serrations for defense is no different.