Loco you were not necessarily doing it wrong to begin with - it's all a matter of taste.
Flakes are ideal because they give the smoker freedom to choose how they want to enjoy their tobacco.
You can fold and stuff today, rub out loosely tomorrow, rub out to a shag the next day, or in the case of coins you can stack them directly in the pipe...
I personally prefer cube cutting for most of my flakes and I have been doing it since bentmike made a thread about it a few months back. It is the same philosophy as the fold and stuff (bigger pieces, bigger flavour) but much easier to master - it is virtually idiot proof and definitely less fussy than the other ways out there...
There is a reason, however, that the same tobaccos would often come in 2 or 3 forms and it all boils down to convenience. Plugs, flakes, and ready-rubbed variations of the same blends were often identical but back in the days when pipe smokers were a dime-a-dozen and demand was high the tobacco companies would cater to the individual preferences of the smoker.
In short, don't feel bad about rubbing out flakes if it tastes right. It is my preferred option for some blends.