You almost sound surprised.
If steem inc don't give a toss about steemit as a blogging platform, which is a well established fact, why would they bother fixing anything that limits its functionality as just that?!
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There is a difference between Steemit and Steem. They may not be developing steemit.com but that is justified by other teams developing their own UIs and allowing Steemit inc. to focus on Steem itself. Fixing Steem itself seems fundamentally necessary, regardless of what happens with steemit.com.
Do tags matter beyond steemit then? Maybe they do...
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Yes, all posts on the Steem blockchain benefit from tagging - so all websites that use Steem will tend to make use of tags too. I am currently testing out different ways of getting my posts directly from the blockchain using a different call to get the data. :)