You are right, it would definitely be great to be able to move a collapsed folder in the project window, containing all events plus automation on group tracks - although I never tried to use it like that before.
The content is just an representation of what is in the folder.
If you select the content (or parts of it), then only the selected content moves, not the folder itself.
The folder only moves in the track list.
You can not select a folder track without selecting the content.
Say you have content in the first minutes, then a gap where there is nothing, and then later on some more events, then you need to select the specific part of the content that you want to move. Selecting the first part an move it will not affect the second part which is later in the timeline.
The visual representation within the folder track track, only shows you what is inside and vertically “groups” all these events. The Group Editing feature is taking this yet a step further.