Having struggled through creating labels, there are a few areas I believe could be improved. 
 
Procedure to create labels : 
a) File --> New --> Labels 
      There is no obvious way to choose label format except from New --> Labels.  If you get  
      the label size wrong, you have to go back and create another new file to amend it.     
      Without reading through the help its not obvious that the "synchronise contents" box  
      needs to be ticked, or how to create a data source.  The process could be simplified :   
      People either want to create different labels or identical labels so why not just ask which 
     and guide them appropriately. 
 
b) Having created a new document, the page shows all the labels with the field names (i.e. all 
labels look the same, with the field names, not the field contents).  A "synchronize labels" 
button is there but pressing it has no visible affect. 
    - Why not show the contents of the field directly, or show them once the "synchronize  
       labels" button is pressed.  After pressing the button, its not obvious at all what is going  
       on and what will print out.  It should be clear. 
 
c) Pressing "print" brings up the mailmerge dialog box.  
    - Why is the mailmerge box here?  I've already specified which data source and fields  
       should be in the labels so why am I being asked again? 
 
d) I click on OK and it prints the labels.  Only now does the actual text of the labels appear on 
the screen - once they are on their way to the printer. 
   - The actual text should appear much earlier in the process before printing. 
 
e) Finally I have the actual text of the labels on the screen in front of me.  But I can't edit 
them.  The sections are protected.  I can only unprotect the sections by going to Format --> 
Sections and clicking unprotect for each label individually. 
  - Why protect the labels?  If there is a good reason to protect them, at least allow one 
option to unprotect all the labels. 
 
f) Not all the labels appear on the screen. 
  - With every file I've tried, only the first page of labels displays; but all print. All the labels 
should display on the screen. 
 
g) Pressing "synchronize labels" again now does something - but not what I want.  It makes 
all the labels the same as the first. 
  - I can't think why I would want this behaviour.  If it is doing anything, the button should 
always insert the correct fields into the labels. 
 
Here's a more streamlined way of doing the labels : 
 i) The File --> Open --> Labels asks whether the labels should be different or the same. 
 ii) The user specifies the fields to be used in the labels 
 iii) The user specifies the label format (size etc.) 
 iv) The screen shows all the labels, not protected, with values inserted (so they look like they 
will really look when printed out). 
 v) The user has the ability to edit the label format and the fields inserted without creating a  
      whole new file. 
 vi) The whole second mailmerge dialog is no longer needed so never shows up (maybe the 
option to print just specific labels is needed, but that can be handled without the mailmerge 
dialog). 
 
Sorry, I had better stop!