It took me a while to work out what these things are called but I've finally got one. Boy, took some effort, after 200+ posts to update them but I'm nearly there! So: the end result is this cool looking tags cloud. Click on the words and you get search based on that phrase, increasing the ways in which Google thinks my site is interlinked and the number of pages it can index. This is the home page for Ultimate Tag Warrier: http://www.neato.co.nz/ultimate-tag-warrior/
No, I'm waiting for the full release. I notice Brad reverted to 1.5 and that's made me quite content to wait.
I have been too lazy to upgrade, but it sounds like that is working out fine so far... Perhaps 2.1 will be my upgrade point.
That is a really cool plugin, but it does not seem to play nice with some other ones (like bSuite) that I really like to use. Tag clouds are really cool though. You should check out tagcloud.com too, you can build some interesting clouds via RSS sources on the web.
That seems to be quite a problem, generally, and I'd be keen to see WordPress start to bring some of these plugins into the main app as integrated tools.