I just realized that VIM 7.3 has built-in support for highlighting Markdown files. Excellent. However, it doesn't fold on the headings.
Can any offer suggestions on how to get this working?
Alternatively, I'm using Markdown only as a way to get simple structured text. If there is a better alternative format, please also suggest. But not sure I dig TVO or VimOutliner.
I had the same question, and played around with Jander's nice solution. The only problem is that by defining folding using syntax, you lose any Markdown syntax highlighting.
Given that you might be interested in alternate markups, I would suggest using reStructuredText, and the amazing Vst vim extension. It does folding very nicely. Rst is much more powerful than Markdown.