I got a niche site at the second place in google. But I'm using a tag cloud on my site. It looks quiet ugly and i got a quiet high bounce rate, so I was wondering if I remove it, is the chance high my site will drop in rankings?
According to my knowledge, tag cloud reduces the bounce rate. Dunno why its opposite for you. Did you try to change its position/size before completely removing it?
It increases the number of indexed pages though it has some SEO value you just have to filter the most important ones and leave the others not showing.