Yes, this is an issue that has been brought up about the Line Palette. Currently, Lines are divided into 3 groups in the Palette:
1) Solid Lines (by default there is only 1, but sometimes more are created when elements are brought into the project file)
2) Dashed Lines
3) Symbol Lines.
Within these groups, Line Types are displayed in the order of their Attribute Index Number. If you go to the Attribute Manager, you will be able to see the Attribute Index Number for each attribute type such as Line Types. Normally, when you create a new Attribute, it will be given an Index Number that is 1 higher than the highest currently existing Index Number. This of course causes it to be always listed last in the list of Line Types within its Line Type Group.
There is one thing you can do if you have Archicad 24. Archicad 24 offers the "Reindex" command in the Attribute Manager using which you can change the Index Number of an Attribute to any other Index Number that is not occupied by another Attribute of the same type.
Another way I can think of if you have many attributes to rearrange is to export all line types to an XML file, and possibly make the index number modifications there (it is probably faster in an XML Editor), then import the result back into the Project. I tried and it works for me. In the attached screenshot, I have deleted the Line Type with attribute index 5, and created a new Line Type called "Tiny Dashed" (it was given index number 26). Then I exported all Line Types to an XML and modified the index number of "Dense Dotted "from 2 to 5, and "Tiny Dashed" from 26 to 2. As you can see on the screenshot, the index number needs to modified at two different places for each line type attribute.
And now, if I show the Line Type Palette, the Tiny Dashed line type (attribute index: 2) is shown in the list immediately after the Solid Line, while the Dense Dotted line type (attribute index: 5) is now shown in fifth place.
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