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I use the tags in Calibre and I tag for various purposes. Some of the tags are genre tags (mystery, classic, sci fi, Star Trek etc.) and some are by source (Kobo, Sony, Library, Fictionwise etc.) You can load DRMd files into Calibre and transfer them, you just can;t convert them.
I also have a tag for 'done' for books I have read, and I use the stars to indicate status, for example, three stars means it's on the Kindle right now, two stars are for books I read in p-book already and have replaced with an ebook (I will read new books before I re-read these) and one star is for books I have read already. It's very easy to browse for books with no stars and see what I want to add to the Kindle.
When the Kindle finally gets tags or folders or something, I will probably add every book to it, but for right now I am only adding a handful at a time.
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