I agree that the favourites are pretty useless as they stand. Having to press an extra key to enable them every time you use the box is stupid.
I've read the argument before that channels that pay to be in the EPG don't like box manufacturers allowing users to hide them using favourites. I just delete more channels than I would if the favourites worked properly. Rather then rarely watching the channel, I never do to avoid it cluttering up the EPG. Some channels I have to leave in because I use them but don't care what's on and don't want them in the EPG (e.g. BBC News, CBeebies).
On another note, the ability to disable the now-next that appears when you open the EPG would also be good. It serves no useful purpose as far as I can tell and just means you have to press right twice to scroll forwards in the EPG.
Also, when going back in time in the EPG (on demand) why do all the channels you've deleted still show up (meaning the upteen regional variations of BBCOne and other channels)?