Even before the SP, she was already the favorite to win the gold medal. The other two were nervous and shaky, and there she was, hitting triple lutz triple loop during practice sessions. Fumie was the national champion, but Scott was like, "watch out for Shizuka, strongest of the three sent by Japan"
If anyone's seen her practice leading up to the SP and LP, no one in their right mind would bet against her winning the gold. She was the favorite.
You keep repeating "the favorite." How do you define favorite? (And is it really a big deal if Shizuka was considered one or not?) According to whom was she the favorite? And when did she become the favorite? It's interesting that you cite as evidence only her practice sessions at the Olympics. In general, the favorite is established before the Olympics begin, based on a combination of the Olympic season's results and last season's world championships.
Going into the 2006 Olympics, I would say the frontrunners were Irina Slutskaya and Sasha Cohen. Shizuka Arakawa had been third at Japanese nationals, did not qualify for the GPF, did not place higher than third at either of her GP events, and had finished a stunning 9th at the previous Worlds. She did not have much momentum going into the Olympics. Irina had won Europeans and was the reigning world champ. Sasha had won US Nationals and was the reigning world silver medalist.
Once the Olympics started though, Shizuka absolutely did start gaining attention with her excellent practices and her 3/3s (even a 3/3/3), which may be why the judges didn't punish her much for a rather lackluster SP, and so she was able to remain fully in contention for the gold going into the LP. Then, of course, in the LP everyone else bombed, Shizuka held it together under the pressure of being Japan's only hope for a medal, and won Japan's first Olympic gold medal in figure skating.
I like Shizuka and was thrilled that she won the OGM. She was the most-deserving, a complete skater and a credible winner. But she was not the favorite to win the gold going into the Olympics. Once the Olympics began, she impressed a lot of people quickly in a short amount of time in her practices, but still only ended up 3rd after the SP. Shizuka winning the OGM wasn't a done deal until Irina fell on the loop in the LP.
I don't see how you can land insane 3-3-3s in practice, convince watchers of your determination to win gold as well as looking like there is no doubt in your mind, win all the practices, and then go out and actually win gold without amazing mental fortitude.
Was she THE favourite? Maybe not. But she was certainly mentioned as a medal candidate (Sports Illustrated thought she would come in third).
I agree that Shizuka had amazing mental fortitude at the 2006 Olympic games. It wasn't something she always had at competitions throughout her career, though--or else she'd have more medals and wins than she does. And I agree that she wasn't THE favorite, but she was a medal candidate and contender.