What is the point of tags, and how does one use them?

I am completely mystified by tags. This is a new feature that is supposed to be wonderful and helpful, and some people have hailed them as a major improvement. However, I can't see what they are good for.
If you put a tag on a file, it is added to the beginning of the filename in Finder, thus shortening the portion that is visible, which potentially makes it harder to identify the file. If you are thinking of telling me to abandon icon view in the Finder, forget it.
Tags have to be added manually. How does that work if you have more than 24 files? I have about 3,000.
It seems that you'd have to come up iwth a categorization scheme for alll the files on your disk. Ccmbine that with tagging them manually, won't that take a huge amount of t ime?
What added benefit do tags give the user?
We used to be able to add metadata to files with CMD+I. Now we can only add tags. Is this progress or regress and why?
Incidentally, I am over 12 years of age.

Thanks for the explanations. What this means in my situation is that tags are an unnecessary way of spending a lot of time making my file system more complicated, without adding any value whatsoever. Without tags, I can find any of my 3,000 files with a few clicks. (On my computer, Spotlight has cobwebs. I very rarely need it, but it's wonderful when I do.) Now that I know how tags work, I can ignore it.
A human being can only perceive a quantity of seven without counting or grouping; hence we arrange things in structures to keep the number of entitites low on each level. You don't need to count three objects to know that they are all there, but you do need to count twelve objects. Which is why Home Alone was believable. We sort screws and nails in jars and toolboxes have compartments. Even the grocery store has a hierarchical arrangement. You don't find steaks in the bakery section, or breakfast cereal in the produce department.
Some people aren't organized, and that's not a bad thing, but no folder, no tag, and no group is going to change a fundamental personality characteristic.
Thanks everyone for showing me that in my case, there's no point to tags. That saves me a lot of time.

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Thanks for the explanations. What this means in my situation is that tags are an unnecessary way of spending a lot of time making my file system more complicated, without adding any value whatsoever. Without tags, I can find any of my 3,000 files with a few clicks. (On my computer, Spotlight has cobwebs. I very rarely need it, but it's wonderful when I do.) Now that I know how tags work, I can ignore it.
A human being can only perceive a quantity of seven without counting or grouping; hence we arrange things in structures to keep the number of entitites low on each level. You don't need to count three objects to know that they are all there, but you do need to count twelve objects. Which is why Home Alone was believable. We sort screws and nails in jars and toolboxes have compartments. Even the grocery store has a hierarchical arrangement. You don't find steaks in the bakery section, or breakfast cereal in the produce department.
Some people aren't organized, and that's not a bad thing, but no folder, no tag, and no group is going to change a fundamental personality characteristic.
Thanks everyone for showing me that in my case, there's no point to tags. That saves me a lot of time.

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