It's funny because this thread comes right on the heels of a post on the blog about organizing gifts, which includes a recommendation for a label maker.
I posted there, so I don't want to repeat myself too much, but basically I don't get the fascination. I mean, the ones I've seen just scream 'unitasker'. They don't do anything you can't do just as well (sometimes better, or more easily!) with other tools or supplies that are easier to store and maintain, while still offering a wealth of other functions.
Like Mimi said: hand-written labels. Or like others said, if you HAVE to have them machine-made, why not use a computer and printer? Even a label printer, if you want, but one that hooks up to a computer. The way I see it, it sounds like a niche product - maybe useful in a manufacturing setting, for instance - not a product that is ideal for household and general office applications.
My entire supply cupboard is populated with Really Useful Boxes labelled using Post-It super-sticky removable labels ($4.50) written on with permanent marker (aka the humble Sharpie - under a buck). The labels themselves are a bright color that doesn't blend in with the other colors visible (the boxes are translucent), the sharpie produces lines bold enough that I can see what is written on it even from a distance, and each label took seconds to make (even when I had to cut it to size using a pair of scissors - I just had the one size and it was too big for some of the boxes).
When I have to label large collections of things (eg the photo archive resulting from a restoration project - about 400 prints, each needing a number and my name), I printed the labels on my computer.