I'm surprised they would fold a quilt for display. I'm guessing space must have been very limited, and it was being done by someone with not much knowledge on sewing, quilting, crafts, etc.
I've worked as a volunteer for our County Fair for over 30 years, and we would be delighted to have so many quilts to not have a place for them. I would suggest a letter or a face-to-face meeting with the Fair Board to make suggestions for better display. And I'm sure they would be delighted to have more volunteers to help set up and watch over the entries. I know we beg to have more volunteers to help with taking entries, displaying,security, etc. A letter to the local newspaper here would not help but probably cause less support at the next fair. As a "Free" Fair we receive no funds from anyone to finance the fair, so it's all done on fund raising and donations.
Your quilt is very cute and well done, I'm sorry it wasn't displayed properly, but hopefully by contacting the Fair Board and making suggestions it won't happen again.