yes, you are all right, tor is not 100% secure, any intermediate/advanced coder could do a trace and work out backwards, but they have to know where to start, I use tor when I am not on my own network as I don't want other wireless networks to know where I am going, that's all, I don't use it to try and hide behind permanently.
as for if the government is watching/tagging is another story, and depends if you ware a tin foil hat or not lol.