Like Dyan, I prefer to have separate sewing and embroidery machines, so I can "multitask". Many of the embroidery designs I use for quilts take 2 hours or more, so I can sew on the sewing machine while the embroidery machine is doing its thing. I have a Janome 6600 sewing machine ($1300) and a Janome 350e embroidery machine ($1400)--love them both.
If you are only going to use the embroidery machine for labels, you might consider using your computer to print the label onto transfer sheets, which you iron onto fabric to make the label. I have made many labels using this technique.