There is actually two different use for the tag list area.
The common use : when you click on a tag, it displays the associated bookmarks.
The alternative use : when the form is up and you click on a tag, it adds the tag to the "tags" text input. So when you add a new link you can just associate it with existing tags by clicking on them
Read more at the Netvibes blog. Thanks for the heads up to Jim from SerotoninRain.