If Second Life really wants to get into the Social Networking game, I suggest they look a bit more closely at the Google+ model of using Circles to help Residents keep track of our Friends list. I don't use Google+, mind you, as what few people I do associate with in Real Life really aren't computer users. Most don't even have mobile phones. And try to get any doctor's office to use email for anything — you might as well pound your head on a wall.
What I'd like to see first is to rename the list as "Contacts." Then some organization, if not like the Google+ Circles, is at least some way to group my contacts by type.