Read Write Web wonders if tag clouds have disappeared for lack of usefulness. They are certainly very good for visualising frequency of information. But that is more a niche area, often limited to tags, though interesting work has been done with tag clouding Presidential speeches and other domain specific tasks.

One of the other issues with how tag clouds are presented on most sites is as a small grouping of tags. They work best when used with a large amount of data. This lets the differentiation between frequent terms and infrequent terms become obvious through font sizes.
Cam Riley: South Sea Republic. Freedom, liberty, equity and an Australian Republic.