I reckon he should limit it to 10 - maybe, the 10 that have most recently updated. That way, the menu doesn't get stretched out so much.
Also, he should make the sidebar thing separate to the original 'whose faves list am I on?' thing. Like, before, if you ticked 'allow people to see my faves list', it meant that you would appear on the 'whose fave list am I on?' list of people you had on your faves, and nothing else. Now, I'm guessing it turns that on AND the sidebar list thing on. Am I making any sense? xD
It's a nice idea though - adds to the community feel, I reckon. My main criticism is yours - ugliness.