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Up, because I regularly take/pick up some of my children from school, track or soccer practice etc. They prefer sitting in the front seat but would choose the back seat of my cab over a captain's chair in the family suburban.
Unless used alot, it makes more sense to lower them. nice shelf for your clothes, won't block BOSE, good place to stash stuff out of sight, looks neater.
I leave the seat upright unless I have the windstop on. Leaving it down limits you to place bigger items on top of seat back which may stress the back seat leather. I suppose if you don't put heavy items on the seat back when folded, you can actually save the leather from UV damage with the seat folded.
Leaving the seat down extends the seat belt which makes it a little cluttered. I suppose it doesn't matter if the seat is up or down is it?