scaleability of tags

First of all, WordPress.com is not the same as self-hosted WordPress, anything there can be assumed not relevant to a self-hosted install for one reason or another.

Obviously the hardware you have will impact its ability to scale, I’m sure you could find hosting that didn’t provide the memory to even get through the install process.

In terms of the code, there are no artificial limits placed on the number of posts, tags, categories, etc., you can create.

Your example of thousands of posts and 100,000 tags is certainly possible on properly tuned hardware, but they’re making no claims that your shared hosting will magically be without limits.

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