True enough; and people have an unfortunate tendency to do just that (FR being a place where it is all too rampant, unfortunately).
Still, I think you go too far if, as it seems from your comments, you believe that labels are "bad" in and of themselves. To know that somebody is an "X" or a "Y" can be quite helpful as a means of establishing a relationship with them.
The mischief comes when you use the label as an end point in the relationship.
I agree with the end-point thing.