Take for example the 'Gorilla' issue that Google encountered.
http://nyti.ms/1JlTBab [www.nytimes.com]
Then there was the issue with the bookmarks and suicide categories
http://bit.ly/1JFkmCr [productforums.google.com]
(This one isn't as big of a problem, as the frustration was probably more due to the compulsory usage of the new bookmarks, but it still shows some hazards of auto-categorization).
With social things, it can sometimes be very hard to solve a problem that works for 95% of the population, but doesn't piss off the remaining 5% (often with good justification). Unfortunately, detecting when you're in that situation in the first place is sometimes equivalent to the problem you're trying to solve.