I exclusively use tags from the sidebar. I would use it even more but as heirachical tags aren't a thing yet I restrict the usage of them to avoid clutter.
I made a comment a while ago as to how I would prefer the UI to function in regards to the sidebar and the tags section in particular - Tag Manager - #3 by Daeraxa

I should also note that I use a bit of a hack to organise my tags in lieu of having a proper heirachy so that the various categories aren't just jumbled up together.
I basically have an extra letter at the start of each tag to "categorise" them, e.g. book related tags might be called something like bCookbooks and bComicbook whereas I might have some recipe related data that is stored under rChicken or rAubergine. I then use the CSS hack I posted about here - Share your CSS - #296 by Daeraxa - to hide the first letter of the tag.

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