Joe, those folds at Second Valley mimic the large scale folding over the whole area, which was at or near the surface.
There are two ways of being ductile. The first, which you feel is evidently the only possible way here, is deep under the surface. The second is near the surface and still plastic.
Second Valley gives an illustration of the latter. Nearby Victor Harbor shows that this area was the product of surface/near surface formation as its granites have obviously crystalized rapidly -- they have very small crystals, which is typical of surface/near surface formation.
If your students, or any students, have been taught that only the first way is possible, of course that is what they will respond with when seeing such a formation.