I’ve just released version 1.7 of the Tag Dropdown Widget. This update is available in the WordPress plugins repository and includes numerous new features and changes.
First, a new, full-featured direct-implementation function, generateTagDropdown replaces both TDW_direct and makeTagDropdown. This new function brings with it a more flexible and customizable implementation that mirrors the features available through the widget.
The following features, mostly requested by users, are also part of this latest update:

Switched exclude functionality to use tag ids rather than tag slugs.
Added the ability to specify the indicator shown when a tag …

I’ve just released version 1.6 of the Tag Dropdown Widget. This update is available in the WordPress plugins repository and includes a number of important updates.
First, a new function (TDW_direct) for use with non-widgetized themes is included. Using this function, users can trim long tag names, display post counts, and exclude specific tags directly from the function.
Second, two XHTML validation errors are corrected.
Finally, a number of important changes to the code structure were made to facilitate future updates.
The old direct-implementation function is still included in this version for compatibility purposes, …

Version 1.6 of the Tag Dropdown Widget should be released by week’s end. This update revamps the function that can be used in non-widget themes to provide the ability to trim long tag names, display post counts, and exclude specific tags. All three features operate independently of the widget dialog, letting users implement the widget and direct-implementation function independently of each other.
Keep an eye on this feed and the plugin repository for the release of Tag Dropdown Widget v1.6.

I’ve just released version 1.5 of the Tag Dropdown Widget. The update is available in the WordPress plugins repository now.
Version 1.5 adds the option to display post counts in the tag dropdown, just like the Archives and Category widgets built into WordPress.