I am having this issue with a user who has 3,000+ folders/labels from years of collection and filing and now that our organization has switched to Apps, his transfer has been a nightmare. Using the web interface is very slow and has actually crashed when trying to rename labels to recreate a new structure to fit into this ridiculous limit. His productivity has decreased greatly since this, and I DO NOT WANT to recreate manually 3,000 plus labels for him to refile wh know how many emails. This is just not something that anyone should have to do.