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.