I didn't think Label was worth much until I started having to use Windows all day at work. How I wish Windows had Labels!
But I think the point of the original post is that there is no Label function in OS X. If you go to the Finder, click on a folder, go to the Views menu, select Show View Options, and choose Global List from the pull-down menu, you'll see the option to include a Label column in a folder window. What is that for, since there are no Labels? Either it's a holdover from the past that will be removed in the release of OS X, or else it is there because there *will* be Labels in the release of OS X.
Unfortunately, it looks like the former is the case. Gone is yet another of the small but dandy features that make "classic" Macintosh such a pleasant and efficient platform to use :-(