what makes one preferable over the other?
Not the best question…
They are different and serve different purposes. Nobody should ever mix them (not even the developers).
Try a search, you will find a lot of related posts; e.g.
http://wordpress.org/support/topic/136487
One question, I have rolled my own customized theme, on my site I use categories for organizing my content, I also have customized category-xx.php templates that I use to display the specific content of certain categories.
I am working on making my theme available for download, if someone is using tags instead of categories, will the custom category-xx.php templates work for tags the same as they work for categories? or is a different template needed?
clear as mud?
@jeremyclark13
That is simple and straight forward enough.
Thanks.
Categories are like different websites for me. Tags help visitors to find the info in the site(s).