Stripping off distribution and press, "labels" are really just left as VC firms and/or incubators for music-production "start-ups" (in est, bands.) Which sounds about right.
You are right about labels one day just being startup incubators and venture capitalists for bands. I guess when you factor in all of the benefits the Internet brings to a band, there aren't many left a label provides other than cash. For a true decent recording you need cash for studio time, a producer and then more money to get it mixed and mastered.