Wrong, Favs stored in flash chip where FW holding. Try to clear NVRAM and you will see it.
It doesn't clear all the channels out of the Fav lists, but it does clear somethings related to the Fav list. It clears the names on the Fav list. And at one point a had a fav list that wouldn't go away even after I cleared it. Had to clear NVRAM to fix that.