I should point out that all of my input here is based on simple MPLS
forwarding of IP traffic in the global table. In this scenario, labels
are only assigned to BGP next-hops, which is typically an IGP Loopback
address.

Well this is true for one company :) Name starts with j ....

Other company name starting with c - at least some time back by default allocated labels for all routes in the RIB either connected or static or sourced from IGP. Sure you could always limit that with a knob if desired.

The issue with allocating labels only for BGP next hops is that your IP/MPLS LFA breaks (or more directly is not possible) as you do not have a label to PQ node upon failure. Hint: PQ node is not even running BGP :).

Sure selective folks still count of "IGP Convergence" to restore connectivity. But I hope those will move to much faster connectivity restoration techniques soon.

Labels don't get assigned to BGP routes in a global table. There is no
use for that.

Sure - True.

Cheers,