This is the best method I've found for organizing media so far- I've tried several category options and they either do too much or are incompatible with other plugins. This one is simple & flexible and we're really pleased with the way organizing works.
The problem comes when trying to use it while creating content. It doesn't seem to be completely compatible with 3.5.1. I'm using the latest version of the plugin, and can't seem to find how to do anything with our nicely organized images from the insert media button except insert a single image to a post, and it does so using the old insert media method, which is really pretty funky.
It's a fabulous method of organizing. We'd just really like to be able to use our newly entered tags to create galleries & select featured images :/
If I'm missing something, let me know!