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Laundroid claims to do just that: http://www.telegraph.co.uk/news/worldnews/asia/japan/1192259...

We had such arms for decades already. Just because nobody bothered to make a laundry folding product out of them doesn't mean we can't do it with a robot arm. For better or worse, many (if not most) interesting projects aren't viable as business products.

The arm is not the hard part. That is why this doesn't exist.

It is entirely possible http://www.youtube.com/watch?v=gy5g33S0Gzo , but there is no market for a domestic robot. Not even for an AiBo.

You see: poor people are accustomed to doing these chores by themselves, while the rich can always use their paper money to hire naturally occurring biological robots.