What do I think?
I think Matt Cutts just likes saying things like this to make things easier for their search Google engine indexing your site. As always, it's just about Google. I wouldn't remove the Tag Cloud on my site in sidebar because it enables members to search keywords and find related topics linked to them fast (members come first before Google). I couldn't a give a HOOT what Matt Cutts says do.
I can recommend to read the article at Moz website, they will explain your everything 
One of my members posted this on my forum today, and I thought it was interesting, so I'm posting it here.
He doesn't even work for Google now. Think he left years ago.
I think same as the person above said. It's probably more about making it easy for Google search, things they don't want to be indexing like TAG pages.
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