Spot on - excellent analysis.
As soon as I heard of this “No Labels” crowd, it was clear that they were a front group and a diversion.
More crudely, it can be explained thusly:
If you have a can of refried crap, and you package it with the label that says “honey”. It isn’t too long before people understand the word “honey” on a can means that there’s refried crap inside.