Sort of a hack, but I ended up using mklink to create Directory Junctions with the names I wanted, since they took away my beloved Favorites.
So, if I have a directory "c:\dir1", which I want to be named "Directory 1" in the Quick Access list, I would run:
mklink /J "c:\whatever\Directory 1" "c:\dir1"
Then you'll see "Directory 1" in "c:\whatever", which you can add to Quick Access, and it will be named "Directory 1".
