Microsoft clips Windows XP Smart Tags
At least for now. And since the government breakup order has been vacated, I think Microsoft will be more likely to put it back in at some later version.

I'd be fine with smart tags if it was an "opt-in" technology for web page developers, as well as end users -- but I'm uncomfortable with it being an "opt-out" one, like it was being setup as, because I think that there's a great risk of them making every page you look at into a Microsoft advertisement.