Tagging is essential for organizing the variety of items found on Web 2.0. It’s just common sense for this digital age. It's like finding a needle in a haystack. Even though you're not able to reduce the amount of hay (items) in the haystack (Internet), by using tags, you have coded the location of each needle (bookmarked item) before it’s added to the haystack making it easy to retrieve a desired needle.
The advantages are all those that you would have with an organized file cabinet: proper place for every paper, hierarchical work flow, common understanding of system norms and standards, ability for reorganization of information. The disadvantages come from use of folksonomy and independent thinkers who tag things their way with flagrant disregard to norms established for the good of all.
I imagine it would be important to put some time into really thinking through the tags that should give your sites. The more precision that is used within tagging process, the more successful others will be when they are searching for sites that you have tagged to be useful.
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