I like the change to favored classes in Pathfinder. XP penalties, well, suck. The extra hit point does provide a minor incentive to chose the flavorfully appropriate class, but is not restrictive, so it does the job in that regard. It does not, however, make in-game sense. Perhaps it would be better to give an extra skill point (assuming skill points will make a return in Pathfinder, which they might) to be spent on class skills per level of the favored class instead.