I plan to reorganise the visuals menu in the near future in a similar way to how you have described.
A new layer will be added as you have suggested above the current 'Types' menu, this will include the following items:
Types, Favourites, All Visuals, Select Mode
It will work pretty much as you have described, but Favourites will also include functionality for turning on and off the favourites list.
I would like to add a Lists submenu which would be similar to the Favourites menu, but would allow the management of multiple lists as well as list selection - Sadly this would require quite a bit of work due to the read-only issues and so will probably not get implemented until....
The Select Mode submenu I will leave to your imaginations - It is the implementation of a much requested feature.