Submitted by matslats on Wed, 04/04/2012 - 6:12pm
Taxonomy arguably isn't perfectly implemented, but its better in d7 than d6. The weakest part is support for the hierarchy, especially in views.
But I wouldn't want to dump it because
1) taxonomy is a well understood discipline with familiar and important concepts, and is an excellent approach to content management
2) many contributed modules have extended what taxonomy can be used for
3) Drupal developers are very invested in the taxonomy approach. Better to improve it than junk it.
