It's easy to lose Applications in the Applications folder and the Groups view isn't always consistent or helpful. It's also limited to one group, which isn't that helpful if you want to search for one app for several possible purposes.
Tagging is a solution, but if you apply to Applications, directly, you have to give permissions each time, which gets annoying. Worse still, any update will wipe the tag.
But if you apply tags to Aliases for each application, you side-step these problems and can use multiple groupings. I think that the alias will still works when applications are updated, unless they change name.
So far, this is working as intended. I've not yet updated any application 🤞
I ran through a bunch of obvious app categories and have been tagging as and when I can be bothered. It's not seemed too arduous.