I definitely found, this past Christmas season, that my listings that were renewed got better placement in search and browse. The best placement was with items that are favorited, viewed, and especially sold. If I made an item that was OOAK, or no longer available, then I tried renewing or relisting with a similar new item. And it got great placement too!
So I say, if it's gotten favorited and a lot of views, always keep using that listing, even if you change the description, title, and photos (of course). You earned it!