The tags on my front page are showing up in two colors, and have the look like navigation buttons. In the post I have tags and categories as targeted words. Here is the blog… http://sydneysvintageclothing.com/blog (hard to explain!)
Categories color are linked to primary theme color, whereas tags are always be single color dark grey.
Some suggestions for your blog:
1) You are using too many categories and tags, while previously(before panda) these could have benefited in the search engine ranking but now they will just cause more duplicate content and penalty. Iconic One Pro tackles it by using excerpts across category and tag pages by default but if you using too many, even that won’t help.
If you ask me I would say: Use only 1 category with 2 tags per post. It’s not really hard to understand: simply check out the top and respected blogs in your industry and see how they are doing, you will be surprised.