I don't even know how it got in favorites but I can't figure out how to remove it.
It's what google does automatically. To move someone off the list you'll need to stop emailing or calling or being called by them so much and then someone more popular should eventually replace that person on your "favorites" list.
That don't sound right. I only have one friend in the favorites list that I haven't used the cell to contact with since July, but yet someone else I contact with several times a week is not in favorites.
Do you use Gmail? Maybe it's based on who you email via Gmail.
I did just play with it and discovered that you can long press on someone from the favorites tab of your contacts and you'll get a popup with the "remove from favorites" option. This will remove it from the favorites tab but not delete the person from your whole contacts list.
In post #4 from Droider he or she suggests a long press on the contact to bring up a menu. I did that and that particular contact brought up the option to add as a favorite when it already was a favorite.
I picked that option anyway and the contact moved up to the top of the favorites list.
I pressed and held on the contact again and this time I got the option to remove from favorites. Again I chose that option and this time I got to the original favorites list.
I have now deleted the contact, which was ported by Verizon from my Google contacts list.