The problem with genre tags is what do you do with books -- more prevalent, I think, among the indie books popular here than with pigeonholed commercial books -- when you've got a book that crosses multiple genres? SF horror? Modern fantasy? Historical romance?
Genre is very much a straitjacket imposed by publishers, who want to segment their audience into handy little blocks and market accordingly, but unless an author is writing for a specific market, it doesn't actually describe books all that effectively. Think about when you were a kid ... did you read only those books that fit your "preferred" genre, or did you browse through the library and grab anything that looked cool, because nobody had told you that you "weren't supposed to" like romance, or SF, or mystery? Commercial buyers want to know a book's genre, or, rather, whether it will fit into their marketing plans for that genre, but that's an artificial distinction. And it's a distinction that a lot of indie writers find either useless or unnecessarily constraining. If we make them pick one, at best the tag is only telling part of the story, and at worst, people who have been trained to believe they "like" fantasy and "don't like" romance, for example, will skip something they might actually like.
On the other hand, tags for DRM, geographical restrictions, and reader restrictions would make a lot of sense. I won't buy DRM-locked books. Someone in Australia can't buy a US-only book. Someone with a Kindle is out of luck with the Nook store. Etc. Those tags would make life a lot easier for people who want to skip over books they can't use.
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