The Mail view that includes "All Mail Folders" also includes the "Favorite
Folders" and there's nothing you can do about that. If you don't want to
see the "Favorite Folders", then you have to use a view that doesn't contain
it, like the "Folder List" view. You'll see more than just mail folders in
that view, however. You can, if you like, create shortcuts to just the
folders you want to see and then use the Shortcuts view.