Kirk,
I would like to add that although the favorites panel could be very useful, for me it is a useless aggravation because every time I use it I invariably end up wanting to to do some right click context menu operation that appears in the Navigator panel but is not available from Favorites and as a result I have to go chase down the folder in the Navigator panel.
I think it would be most helpful if you made the Favorites folder context menu look exactly like the Navigator menu, and put this issue to bed once and for all. The Delete operation is just one of several missing menu options. The Properties option is also very important because it is a sanity check I use before deleting a folder to double check that there really aren't any files in the folder that I'm about to delete. Deleting empty folders is my most used reason for the Delete folder operation.
It would also be helpful to add the sectional division lines to the Favorites menu to make it look literally exactly like the Navigator option. I find it very disorienting to bounce back and forth between those two context menus. The Navigator context menu is very well designed. The Favorites is, in comparison, an afterthought.
Best,
Neil