Oh?!
Well it's about time! XD

But can we organize our favorites?

No.

The option only works with our main gallery and scraps. You can put any of your submissions into folders, but it doesn't actually affect the original folders. Those still contain everything. The new folders we create are basically optional filtered views to our galleries.

It's still a really nice system and I'm glad we have it! Maybe in another 10 years we can do the same thing with our favorites :P

Maybe a folder for all things Isabelle. :P

Perhaps folders for the various series you have art for. A Pokemon folder for example.

You can have folders?

yep! http://www.furaffinity.net/journal/7036344/