Basically yes. Irrespective on which method you have chosen for them folding i.e. either via the action of locking the car via the key fob / KESSY, or manually via the folding mirror position on the mirror adjusting switch, when in the folded position, the puddles lights in the mirrors are disabled. As soon as they unfold, they illuminate (again either via the ignition on or via the door switch).
This "tweak" apparently allows them to illuminate at all stages of the folding process (i.e. mirror position independent). However, as the lights are actually in the base of the mirror housing (rather than the mirror base), when folded the lights don't shine downwards but rather along the car's length. It remains your decision as to whether this is how you want them. Me personally, I'll think I'll enable it, as any light is better than none, and it can also act as a marker light for the side of the car and should look quite cool having them on whilst the mirror unfolds (like they did on my Scirocco).