It's always a debated one, personally I've always sold at least a limited number of the labels. Whilst I absolutely agree it opens yourself up to abuse (eBay/people applying them poorly), it's not wildly different to having them applied by us when someone sends a bat in for refurbs - I've still seen these end up on eBay the day after they've been sent back etc, all that does is control what state they leave me in.
Ultimately the labels are the key to marketing the brand. I've seen no end of orders from guys who've bought a single set of labels along with the matching softs initially, only to then return over the next season or two to buy a new bat when they've needed it - I absolutely wouldn't be selling the quantities of kit I do now if I hadn't made the labels readily available since the relaunch. Admittedly I am starting to scale back access, for example the new gradient designs are available solely on new bats, but I plan to always have at least a small number available for those that want the look but can't afford/don't require a new bat.