I'm all for removing tags from titles. However, the underlying point of "Question Titles - Removing Tags makes 'Questions with similar titles' useless" is valid. We need a better way to display actual similar questions.
I just realized this when preparing to ask about how to find out what changed from one build to another in TFS 2010 when using branching. Of course, being the "tag-remover" that I am, I planned to use the tfs and tfs2010 tags. The title "How to Determine the Work Items Fixed in a Build?" displayed a similar question list with only three TFS-related questions. Saying "TFS Build" helped a lot, even though many of the questions didn't have "Build" in the title. Adding "Branch" didn't seem to change much.
I have to admit that even using the search box doesn't give a much better set of questions (searching for "find out what changed from one build to another in TFS 2010 when using branching" returns 5000+ questions). Still, maybe if we moved the tags list to before the title, we could narrow the "similar questions" list to those which are similar within the tags. This might also reduce the need people feel to put the tags into the question titles.