I don't think the link addresses this question. It would be nice to rearrange one's list of favorites stored on the local device. This should affect the order of favorites selected by clicking next and previous track. Currently there appears no way to do this short of re-installing the app. The obvious answer would be to export settings to xml, edit the xml, and re-import. Unfortunately this does not affect the list.
The reason (for me, at least) to have this feature is to group favorites together by genre (pop, classical, news, etc.) So if I'm listing to a particular genre I can easily stay in that genre.