I wanted to come back and confirm that what I first though was the solution isn't in fact the problem and I'm still facing the same issues.
Adding tags to datastores and then creating storage policies worked for me until I tried to remove a storage policy from vCloud, after that I can still create storage policies but vCloud does not acknowledge them or any datastores that are tagged. The existing ones are still visible but again I cannot add any new policies which means I can't add any more storage via new storage policies. I can create a new storage policy based on an existing tag so it seems like vCloud won't recognize new tags themselves or anything associated with them.
This is a huge problem and I am opening a support ticket because this is a real show stopper.
