They don't exactly work in conjunction. If a user does not check the IPS checkbox, they won't get my newsletter either, unless they have explicitly subscribed to it. In other words, if you set up my newsletter and you choose "default groups" who will receive it, only users with the IPS checkbox checked will get the newsletter.
If they specifically subscribe to the newsletter, then they will receive it regardless of the IPS checkbox.
Think of the IPS checkbox as a default and the individual newsletters as an override.
So if ALL your configured newsletters are in your registration form, great! Now... what happens if you create a new newsletter? No one will get it unless they manually subscribe to it.
I would not recommend hiding the checkbox. Instead I would suggest changing the language string so that instead of "send me news and information", it would say something like "send me other information" or... I don't know. I'm not the best with wording. I'm just saying that hiding the checkbox may not be the wisest solution.
Tags are not supported at this time. I would love to add tags (along with a lot of other things), I just never seem to have the time...