I think it would be great if the quick favorites menu kept things automatically categorized like the full inventory menus; Weapons, Apparel, Ingredients, Potions, Books, Keys, & Misc. It would still be quick and efficient to use since only your favorites would be listed, not your full inventory. Right now I don't use it as much as I would like because everything is jumbled together in one alphabetical list. Its sometimes a little bit cumbersome trying to think of and locate a magic spell or a certain item by its alphabetical order with everything else, you know? A Destruction spell is way up here, another one is down at the bottom, and some different one handed weapons that I want to dual wield are scattered about...

It could be implemented a few different ways; for example, either by keeping the favorites menu in one straight list and putting a simple break between each category; or what I think would be better, pressing the favorites button pulls up a quick menu of the seven inventory categories (If you have no favorites in a category then that category doesn't appear) and clicking on or tapping the left stick (I'm playing the Xbox 360 version) pulls up a second menu to the right with everything that's favorited in it. So if I just have a few weapons and a couple potions favorited, only those two categories would populate the quick menu.

Magic spells could either be listed altogether under one Magic category, or it could display each magic class as its own category like the others. I'm not sure which of the two would be better. Maybe the latter, if they were just grouped together away from Weapons, Apparel, etc. and also displayed only when containing a favorited spell(s).

One big long alphabetical list isn't as good in practice as it maybe was in theory, and like I said its more convoluted than it should be searching in terms of alphanumerics when navigating my favorites menu for different categories of items. I would rather pull up magic spells with magic spells, armor with armor, potions with potions, and so on. I think this would do a good job of keeping the favorites menu a quicker and easier way to navigate your inventory while making it a little bit more organized and efficient to use.

Thoughts?

I would like an option for hotkeys or binding combinations of keys to certain items and abilities.
But this would increase the skill ceiling of the game considerably and probably make it quite easy, or at least so I suspect.
But as far as the current favorites function, I think it is decent, it is only meant as an easier way of finding things than having to go into your inventory, which it does quite well imho.

Yes, that is good system. I simply couldn't play the game anymore without http://skyrim.nexusmods.com/mods/4862.

However i don't see Bethesda doing anything about the UI themselves.

Console hotkeys. Learn em.

I already said I'm playing the Xbox 360 version?

You've got two assignable hotkeys on the D-pad.

PC mod ftw

Well then the only viable solution would be to sell your xbox and its' games and buy a pc.