Well that sounds like you could tie it into an additional source of rerolls and awesome dice. You probably saw the item creation stuff on the author's webpage so getting temporary items works too. I'd hesitate to call it progression though, and the system isn't that geared for it to begin with. It's more like they're meta-resources like fate points or whatever. The difference being the resources/rewards are tangible things that exist alongside the characters. 

As for NPCs, I guess Void Hunter Morgana?

[quote=@Thinslayer]
 Favor could be used to gain story benefits, such as gaining allies for a battle, earning conquered territory, or[b] even getting a moment alone with Her Majesty[/b]. 
[/quote]

So are we like a dating sim now? Where the players are competing to be best boy or girl and fill the Emperess's dark soul with light? 

How many favor points does it take to hold hands?