Right now, tags appear somewhat awkwardly in the footer on every page. Instead, tags should work like blog tags do--they should be a comma-separated list of "personal keywords" that you can put onto a bug. We can display the list of choices in an AJAX-like fashion if we really want to show people their current tags. If they type in a tag that they haven't used before, that just creates a new saved search. This would make people use and love tags.

Adding some more bugs as blocking this one. Maybe we will redesign the tagging system to not appear in the footer anymore. We will see.

pyrzak's students' research indicates that tags are currently a very severe UI problem.

Everything that has been asked for in comment 0 has now been implemented, mostly by bug 616191. The remaining open bugs are smaller improvements, and so I'm marking this bug as fixed. This of course doesn't mean further improvements are forbidden or shouldn't be suggested. :)