The smaller wheels have advantages and disadvantages over bigger wheels. Bigger wheels run smoother over bumps and potholes because they touch the ground at a flatter angle. The bigger the wheel, the smoother the ride. Lately 28" wheels are coming back in vogue for touring because of their great angle. 26" wheels (those of mountain bikes) are by far the easiest wheels and tires to find in the world and so therefore are very handy when you are traveling. Bigger wheels also have a greater gyroscopic effect, so they provide greater initial stability than smaller wheels and are great for beginning riders for that reason.
However, smaller wheels are much stronger than bigger wheels. Their spokes are smaller and thereby less likely to break. They also have a much faster acceleration rate and with their smaller profile work much better in winds (something you are always going to have to deal with on a bicycle), both from the front and from the side. They have a harsh ride on bumps and gravel, but when used with suspension that problem is solved. Initially smaller wheels feel more unstable, but with practice riding a smaller wheeled bicycle becomes second-nature. Smaller wheels also allow for greater variation in frame size, can carry more luggage at lower center of gravity, thereby giving a loaded bicycle more stability, and smaller wheels fit much more easily into a suitcase for carrying a folding bicycle onto a plane (and thereby avoiding very high bicycle fees). Once you get used to the squirrelly-ness of a Bike Friday it rides just like a full-wheeled "normal" bicycle.
The Montague bicycles are okay, but their geometry is not ideal for touring (you would, in general, want to have a longer wheelbase than a racing or sport bike). They are also heavy. There is a reason why most folding touring bicycles have small wheels. If you want larger wheels, using an "S & S Coupler" to break a normal wheeled bicycle in two is a much better "folding" solution.
The fastest landspeed for a bicycle was made on a bicycle with small wheels.