Tag clouds can be sorted in different ways: alphabetically, by frequency, semantically and randomly. Will McGugan prefers them sorted by frequency, because that makes them look better. In the comments people pointed out that it is easier to find items in a sorted list. Will responded he chooses form over function.
Navigation aid?
But what exactly is this function then? UI-patterns summarizes the problem a tag cloud is supposed to solve as:
The user wants to browse content by popularity or most elaborate topic
In short: a tag cloud is a navigation aid. The user wants to browse and is in need of information on popularity to decide where he wants to go next.
