Most questions on this site involve some degree of feeling awkward. I would estimate that 50% of questions on this site could use the awkward-situations tag.
Let's remove it and use more specific tags instead. What is the situation? Why is the situation awkward? What do you hope to change?
I don't see a pressing need to remove the 'awkward-situations' tag. It has been used nicely so far, IMHO.
I do accept that what's awkward depends on who you ask. To me, as an Indian, it would be awkward if suddenly two of my friends started kissing each other in public. We don't see such things every day here. I'm sure it's quite different in, say, the US. Well, that may be a bad example. Nevertheless, just because a topic is subjective, does not necessarily make it an obsolete tag.
I agree with you, for two big reasons.
What sorts of situations are awkward vary from person to person. I'm one of those where pretty much any sort of interpersonal interaction not with my friends/family qualifies as awkward. For the brave/socially able, the things that fall under the awkward umbrella will shrink. It's the sort of tag you could argue back and forth on whether it should be put on a question.
As you said, a lot of the questions on this site could be classified as awkward. That's always a bad sign. Over on Computer Science Educators, introductory-programming was on some ridiculous number of our questions, even though it was meant for only a small subset of them. We killed that tag, because it was misused. I see awkward-situations being misused in the same way.
As for what to replace it with - do we even need to replace it with anything? I'm not sure we do.
