I would really like to have this naturally tapered "fairy tale" hair but does that mean that if I get splits or damaged ends that I couldn't cut them?  If I did search and destroy every month would I still be able to achieve the naturally tapered ends?  

Fairy tale hair comes from not trimming the ends in a structured manner.  Trimming your splits will still allow you to achieve the naturally tapered ends you desire.

What does "fairy tale" hair look like?

Fairy tale hair will usually have a natural thinning at the ends wich is the result of not trimming.  Some would describe the ends as wispy.

http://anaissatin.freespaces.com/godspeed.jpg
This is a painting that Anais Satin has on her hair site as an example of fairy tale hair.  I love how it looks so flowy and natural.

Very nice, my dream hair

It's difficult to decide on tapered or non. I still can't decide, myself. :P
There are a bunch of considerations to think about when deciding on hemline:

(3) Are you a neatly-groomed organized person, or a naturalistic come-as-you-are kind of person? How do you get ready for a party? Are you more casual or formal? Are you bothered by details?

(2) What is your hair volume? If you have really thick hair, having tapered hair will take out some of the bulk. Tapered hair is also much easier to tuck into a bun because the ponytail gets thinner and thinner as you wrap around and around, and finally the ends tuck into the side of the bun.

and the most important one:
(1) What is your hair texture? Curlies and wavies look better with tapered ends as a general rule. Straighties tend to look better with a blunt u or a u.

Of course these are only GENERAL considerations! :)

Hugs and blessings
Anais

i like the shape of natural ends but if you let things go on until the ends are see-through, it gives rather the impression of having thin, unkept hair than anything else. so i'd have to agree here with anais, it's nice on people with "too much" hair, not necessarily textured though. if you're not that lucky hair quantity wise, i strongly suggest cutting it into a deep U or v shape: same shape, but more solid ends  ;D
it's my personal aim anyway. (go away you nasty layers grrrrr)

A healthy hair can get naturally tapered look- you'll get it when your hair reaches terminal length because not all of your hairs reach that extreme length. Doing S&D missions but not otherwise cutting also gives tapered look to the ends in time. Thin hair achieves this look more easily than thick hair.

I quite like the look of naturally tapered hair that turns into a see-through "mist" before disappearing. IMO, it doesn't look scraggly at all, if the hair is healthy and well cared for (See Galadriel's hair in LOTR, it was extensions but very beautiful). I think it's a very romantic and ethereal look...so, I agree with Anais that it suits better to some personalities than others. If you'd like the look, you are probably the kind of person to which the look suits. :) Be patient, take good care of your hair and in time you'll get your fairytale ends.

I seem to go in cycles as to the shape of my hair, I love the feel of blunt ends right after a good haircut, but then desire the wispy ends of the hair I had before.  So then I let it grow to nice wispy ends, and then want the bluntness of a fresh cut, so you guessed it, I end up at the hairdressers getting those ends cut.  The phase of my cycle that I'm in now, is that I had just gotten about 4" chopped roughly 2-3 weeks ago, I am enjoying the healthiness of my hair, but really missing the length.  My husband says that he liked how it was before the cut, which was the wispy type ends, and I'm kind of missing that now, too.  What a wierd, endless cycle!  :P