Yes, I guess each approach has its pluses and minuses.
It's not an issue for me the current plugin works, at the moment, but I am thinking about the future, when in a few years time I am planning to have thousands of images on all possible subjects.
So then my tags would probably be of a size of a small dictionary, and I am not too keen on an idea for each page to have all these tags embedded in it. Especially when browsing on a smartphone over a 3G metered/paid connection. But of course technology is improving by day, and in a few years time it might not be a big deal.