The point is that favorites are used, by some, as profiles for different people of different ages (otherwise what's the point of favorites at all - you already know the games you like best).
There are actually some children that use these games machines, believe it or not.
I don't see how raising the favorites limit will upset anyone who doesn't have more than 100 titles in their favorites.
It will be very useful for those who allow their younger children to play and like to separate the suitable titles for them.
I agree, some definitely should question their chain of thought and consider the fact that the Wii may be shared by multiple users