Here is a short wish-list I have for the Favourites Panel.
- add Expand All/Collapse All to the root item
- add option for auto-collapse-when-you-click-on-another-node
- add option for auto-expand-on-mouseover to the tree so that I can turn it off.
- make separate options settings for the favourites panel. I think some of them are linked to options in the Tree Settings, but not everything there is applicable and you have to guess whether they apply. I think there should be settings for the Favourites panel at Settings > View > Favourites OR add a tab for Favourites to the Tree Settings Panel.