When I read that GMail was updating its label structure to allow for drag/drop and hiding, I really wasn't sure if this was going to be much of an "upgrade" for my email client (and central web nervous system) since April of 2004.
However, I was wrong. I have a number of alias' set up around my main GMail account (which can be done simply by just using the format of firstname.lastname@example.org). With these alias' I can keep track of things such as my 2Do lists, my daily journals, triathlon training, etc by routing the alias' to specified labels using GMail's filtering tools… it's really become the way I operate. However, I don't necessarily need all of those labels displayed at all times since I'm using quite a few of them and they were taking up a good deal of precious real estate in my GMail sidebar.
So, here's what things look like after the update and with my hiding of labels:
The labels I access the most (as well as default settings such as Starred) are still there. However, I've saved a ton of space and made room for my fav gadgets "above the fold" in my inbox. It might only save me a few seconds by not having to scroll down to reach my Google Calendar or Docs gadget, but it makes a world of difference for me.
GMail continues to impress me and make me glad that it's become my web nervous system (and now my blogwriter since I'm composing this post within GMail!). I'll do a more in-depth post about how much I really rely on GMail to get things done as well as process incoming and outgoing work/personal flows soon.