Here is a little something I made using Wordle. Basically, it has made a nifty little tag cloud out of this blog's RSS feed. Apart from being something pretty, tagging can make searching and finding easier on the internet, in catalogs, etc.
I have been using tagging on this blog so I can easily access any of my blog entries. It is in a widget on the right side of my blog.
Tagging can be used in library catalogs to aid patrons in searching. Tagging is also a "looser" way of organizing, making consulting a rigid control vocabulary unnecessary. In a way, tagging could be used to better reach patrons, as they have opportunities to try multiple search terms that may or may not be "official" and still pull up records because they have been tagged by a librarian that has put him or herself in the patron's shoes for a few moments, and imagined different search terms that they might use to find the record.
Tagging is also very useful in a library blog rss. I have started incorporated more tags (which is different from categories) on the Un-Shushed! RSS feed to make it more searchable and easier to archive on search engines and on the blog itself.