The removal of lyrics is a huge step back for the app, it's the only reason I bought it and from the response on the app store, it was a major feature for many other users.
Thankfully I still have the previous version although it's extremely slow and crashes very often (and it looks like it doesn't run on Lion?). Without the lyrics there's no way I'd recommend the app any more.
And to add insult to injury, the web page for Tagalicious still prominently mentions the lyrics feature. Come on, that's just sad.