The point is that Mark doesn't consider subcategories "improvements" or I'm sure they would have been added. Personally, I think it's a very important option and it'd be nice if it was available as a default extension at some point.
Vanilla is DISCUSSION oriented, so there really is no need for subcatagories. If you read through some of the other discussions here relating to this topic, you wil lsee that Mark reluctantly put in support for even catagories. It is about the content.
I still think a labeling feature might be better (like gmail). Admins should have the option to define available labels, and/or let users define labels for their own posts. The most popular labels are listed as categories where users can view all posts that have that label applied to it. This would fit much better to the vanilla ideal (discussions--labels don't have to be used) but could also help organize things better.
I think I'll make a new discussion with the labeling idea since I think it deserves more feedback than just those hwo read this overdone subcategories thread.
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