I wasn't aware of the Google Drive thing; that's a shame it was found to be confusing to users. I'm glad Gmail still has tagging, because I do label my messages in multiple ways, and would find it agonizing to use a hierarchy.
Regarding photos, I fully intend to have a tag-only system to organize my own collection. I see file names and folders and counterproductive.
I agree with you that tagging becomes more complicated, and the semantics of "delete everything in here" is different. Gmail provides some insight into this - you have to distinguish between untagging a bunch of files versus actually deleting the messages (and any tags they carry). This isn't a dealbreaker in my opinion; it is a consequence of being more expressive.