Makes sense to me. If I tell S1 that a plugin effect or instrument is Favourited, it should appear at the top of the list when I search a string that matches part of the plugin's name.
For example if I have both the Waves API-2500 and the UAD API-2500, but I mark the UAD as favourite, the UAD should come up above the Waves. This mean that all it takes is a single down-arrow press for me to have the UAD highlighted and then Enter to apply it to the channel.