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Suw Charman gives a summary of a presentation by Kevin Marks at Supernova on tags. Mark describes the Del.icio.us and Flickr approach as a bottom-up one. It has a much lower cognitive load on the user. A hierarchy is much more difficult. He also calls is dynamic categorisation.
I agree. Tags are much easier to use than categories. But you need discipline. I regularly forget adding tags. I guess I will use categories only for very broad tags. On this weblog I already limited my actual use to: clients, formats, general, services.