It would be nice if filter had the option to segregate model/annotation objects instead of only alphabetical order (actually both would be great, some type of toggle perhaps)
My ideal concept of the Selection Filter would be multi-tiered as follows:
1. Just as you've said, there would be two checkboxes at the bottom of the dialog to include/exclude Model and Annotation Elements.
2. Furthermore, If all of the selected elements belong to the same Category and the Selection Filter is activated, the list would be narrowed down to the Family names that were selected.
3. And even further, If all of the selected elements belong to the same Family, then the Selection Filter would be narrowed down to Family Types that are selected.