I think this is the behavior most people are going to prefer. It seems like it's pretty general to use "watch" for what is now a "Star" (i.e. something you find interesting but don't want updates from) so this will probably please the most users.
I mean I totally agree. Being able to favorite something without getting updates is great. I just think that changing the default behavior (aka coming to the site one day and having nothing new in your feed) is a little bit strange.
Strange, for you. A lot of us are unfortunately leechers (and there are more of us than yours). We don't (sadly) participate in big- (or medium-) sized projects and mostly do our own stuff and thus don't really care about specific commits in Node.js, homebrew or rails. When there's a new version we're excited and will use them, but the internal and day to day operation and progress of those projects are of little interest to us.