The WordPress team has finally made a clear distinction between “categories” and “tags”.
Remember my long list of categories on the right of the blog?
I had to introduce several entries on categories for each post, just to have it tagged.
While now for each post “real” tags can be added.
Tags are not shown on the “Categories” section.
Therefore underneath each post the “Posted in:” is meant for categories and the “Tagged” for tags.
If you are wondering about why someone should bother with tags, just think of the Web 2.0 concept.
Tags are everywhere, from Flickr to Technorati, to Blogger, and they are a great way to label and categorize your online content. Search engines also make use of them.
On WordPress.com another advantage for using tags is that each tag has its own web page and RSS feed.
For example for the tag “Software”, the web page is http://wordpress.com/tag/software/, where you can find all latest “Software” posts from the WordPress.com blogosphere.
In conclusion, enjoy the updated Categories, which are much more readable.