Yes. I have it setup like the System 7+ days even with the "In Progress", "Personal", "Cool", etc. It's been working very well for my current projects this semester, especially since I can tag files with multiple ones and organize everything with smart folders that way.
No, I find little need to categorize my files in any manner like that. Putting them in different folders seems to be sufficient to meet my needs. Its a cool idea but one that really doesn't impress me much
I cannot figure out why tag search is not working. I open a finder window, click on the tag I want from the left hand sidebar, and my tags do not show. It's driving me insane / posing a major problem for my team (this is how we were planning on organizing our work to make it easily searchable by category).