This was in works for some time, but due to many changes in WordPress meta boxes, I was reluctant to complete it. Now, that things are finally sorted out, Pro version taxonomies/terms manipulation from post editor is much improved. Also, WordPress 2.9 is now minimal requirement.
All changes this time are for Pro edition, and nothing of this will be part of Lite. As you can see on the image on the right, button is changed to slick designed tag icon (Fugue icon pack), and drop down menu is added to the button with shortcut links. Menu shows all taxonomies for the post type (yes, it works with custom post types). Click on any of the options will add selected text as a term for the selected taxonomy. In WP 2.9 you will see only non hierarchical taxonomies in this list.
Click on the button, opens already implemented dialog with search/replace functionality. This time is improved to support custom post types and to turn terms into shortcodes, not direct URL’s. With that you will have no URL’s hard-coded for terms linking, and plugin will render shortcode as a link. More options there will come soon.
Many bugs (mostly WP 3.0 related) are fixed in both plugin core, widgets and tinyMCE editor integration.
As I said, all this is only for PRO version of the plugin. Lite version will remain to feature only managing of custom post types and custom taxonomies, all advanced features are for Pro only.
I have a bug in GD Taxonomy.
If I create a custom post type and afterwards try to edit or delete it, I can’t.
It does appear in de menu, and I can perfectly use it. Though I can’t change or delete it.
Another thing is less likely something of your interest. If I have a custom post and a custom taxonomy and I input a new term for a taxonomy and make a new post in that custom post, the taxomy widget shows zero predefined terms. If you press the link “Choose from the most used tags in …” You get the div underneath it showing the text: “Invalid Taxonomy”
I will check for the custom post types deletion bug and issue the fix soon.
As for the custom posts and custom taxonomies, there are way too maaaaaaaany bugs in there, and are all WordPress bugs. WordPress 2.8/2.9 had some bugs with custom taxonomies, but nothing serious. Current WP3 development version has some over 30 still opened bugs related to this, and many strange things are happening. Since I use both on my websites, I am always looking at the development of this and make changes to plugin as needed.
This website (for premium members) has Central Documentation implemented with custom post type for document and 2 custom taxonomies. And with some nightly builds the whole thing crashes. I have stopped updateting this website with new builds because current one (10 days old now) works OK with few problems that don’t really cause much problems.
Anyway, GD Custom Posts and Taxonomies Tools will be updated as needed to implement new things WP adds, but we have to wait for WP to be finalized to be sure that everything works properly.