Does it make sense for this index to simply live in the tag wiki and retire the old index post?
Yes, No, Waffles?
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If you're going to have an index anywhere you may as well slide it into the tag itself as it's supposed to be the jumping point for people fresh to the tag use.
To make it more visible, launch the info tab by default if the tag wiki is over a certain scads amount of characters. The longer, the more likely it is to be something of a read.
A few down-sides I can think of off hand...
It'd no longer be available as a target for dup-closing.
This may not even be a down-side. If it is, we could probably just revive a meta faq question for that purpose...
Editing requirements would be considerably higher.
However, with suggested edits low-rep users could still suggest changes - which could then be approved along with the addition of the faq tag when necessary. This is a rather appealing workflow.
Justin Standard loses a bunch of meta rep dating back to August of '08.
He's a pretty cool dude, so I don't think he'd be all that upset, but... The principle of the thing!