Yes. His defense is suffocating at times both in the post and on the perimeter.
One thing to note about this year is that Favors is playing pretty much mostly with an entire 2nd unit, meaning no starters. It seemed like last year he was getting mixed in with starters more, which I believe frees him up a bit. Watson is a good fast-break PG, but he is mediocre at best in half-court. Kanter is good, but his man just sags off him if he goes outside 15 feet. The paint is absolutely clogged with the 2nd unit, spacing is terrible. They are pretty much ineffective unless the tempo is pushed.
I see improvement, I see more moves. He just needs to start converting at a higher rate. He needs to eliminate the jumper from his shot selection until he has perfected it. I see improvement though. It's going to be gradual with the amount of minutes he gets currently. No need to panic. Favors was a raw kid coming out of college, so it's going to take some time.
Should we consider him our "franchise guy"? Good question, I never really did. He definitely has potential to be one of the better defenders in the league and a more than capable offensive player. Will he be 20 and 10? Probably not, but if he is a strong 16 and 10 guy with stifling defense, then that is better than having a 20 and 10 guy who can't defend.