The last time I checked a bag, months ago, I was picking my luggage up after coming off the plane (very) late. My bag was sitting with two others, about to be locked up in the Great Baggage Jail at PDX. I asked about the red tags and was told with a smile that "Those tags are for people who need to feel important about their luggage. They have no effect on the process whatsoever." I said, "So let me get this straight. I can use those so that my bags can be smarmy to the other bags?" She laughed and said, "That's the sum benefit, yep!"
It was a fun exchange, but I think I'll turn those tags down if I ever check luggage again. (The chances of that happening again are... worth another post.)