Labels are essential for "helpers" such as plugin vendors to monitor for questions on their plugins.
The label selection dialog is largely useless as it stands because of all the cruft (see screenshot). Lots of people don't even know how to use labels, they just paste their question there, hence cruft.
The label suggestions should be sorted by popularity... this would cause natural clumping around one or two labels, rather than a distribution of between many. Perhaps even show the number of these labels in parens.
This distribution makes it impossible for me to watch all possible labels.
Not only that, the list is actually truncated with no indication that it's truncated. This makes it impossible for a user to find the correct label for my plugin, eg addon-com.onresolve.jira.groovy.groovyrunner.