Another simple fix, but one that makes things easier for a lot of people. The effect on the nested labels is what should help me the most.
"Today we’re making a small change that makes it easier to handle long label names: you can now add and edit label names up to 225 characters. The old limit was 40 characters, which wasn’t enough for some people who had switched from Outlook or accessed Gmail through IMAP.
Label names can get really long, especially when you use Nested Labels. When that happens, Gmail will shorten them if necessary to avoid cluttering your view."