(I wanted to put a quote from sp's post up here but yabb said my message was too long. I guess I talk too much.

)
Ok for public reference I'll go over these down the line. Those are some great ideas btw.
Lazarus already has full mouse support in a pont-and-click style.... you have to activate the buttons, though in the skin your making. However It will never be fully act-labs comp simply because I don't like buttons and i use a left-click, right-click, double-click mwethod to navigate. I want my fe to remind you (however loosely) of an arcade selection screen within a video game. Arcade games don't have buttons, but windows apps do, so i try to stay away from them.
I've actually been contemplating on a recently played games list. It would be easy enough to code, but I can't figure out where to put the darn thing. As it's a special list I would like to keep it seperate from the rest.
As you said I like the search idea and that will be added very soon. As for the favorites list. The list helper isn't really designed to make favorites, it's more for generating dat files for emus that lack dats, and adding pc games to a list. This isn't well documented yet so I can understand the confusion. Favorites lists are actually very easy to make. You make a path entry in your dirs.ini and Then make the follwing search entry...... 2=Pacman;2=Galaga;2=Street Fighter 2
or whatever your preference until you've filled a list. When you add a single game at a time it ignores the clones flag too, so you could say add all the mk parents and then add 2=Ultimate Mortal Kombat to add umk3 which is technically a clone but still has enough options to be a full fledged version.
As for creating lists on the fly... I can understand how some people would like that, but personally I don't. I take a lot of time getting my lists just the way I want them and I don't wnat my goober friends coming in and screwing it up. As a matter of fact I go to great lengths to do the opposite, that is make sure the major things can't be changed at run time. The only thing that can be changed is the appearance, which is easy to set back afterwards.
In another approach, what I've been thinking of doing is adding a recall button like on your tv's remote. press the button and you zoom back to the last game played. Press it again and you go back to your original position on the list.
I like your idea of moving through categories though... I have a ocx that turns a label into a scrolling marquee. What I could do is add a this with all of the list names and have to were if you click on a caption it jumps to that particular list. Again I hate buttons... I'm just trying to figure out a way i could do it without using them. This would obviously be a mouse element though and wouldn't be included in my default skin.