As a music fan, I still think labels have a value. Using 12k as an example, I first started listening to the label because of Giuseppe Ielasi, and discovered a lot of good music in the process that I may not have listened to otherwise.
As a musician, though, and one who's only dabbled with netlabels rather than commercial concerns, my feelings are mixed. My experience with labels has ultimately been perfectly neutral. No harm came from it, but I've not seen many rewards from it either, other than the personal reward of working with good people.
If labels were to disappear outright, I'd still find music to listen to, and I'd still release music, so I don't think their death would impact me greatly. But I would miss them, as I've always liked them as an organizing principle. Maybe they need to change, become more like media entities like Vice, where they are producing and generating revenue from multiple types of projects and various endorsement/partnerships.