Look again. The People app has finally been updated to deliver the same functionality as the original function. This thread could actually be closed since the issue is finally solved.
Absolutely not !!
I just tried to add a new colleague as favorite with people app, there's no way to do it. It used to be a no brainer with contacts.
Using people app : the person does not show in all contacts... fine, I click on add contact, type a few letters from her name and her card is found. I click on it, it opens a window with her contact information that I cannot edit and I click on save. It says impossible to add contact, contact already in your list.
I try to search her name in all contacts... there's no match ! I'm stuck there with the new people app, great. And I'm not even mentionning the loss of the right side panel with conversations in people app vs the old contact feature !
Workaround ? Open teams classic, go to contacts, favorites, click add contact, search my colleague, find it instantly, click ok and done, she's in my favorites.
What a progress...
But as you mention, at least Microsoft remembered that status was vaguely useful in people app and added it.