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I for one don't like this - I'd rather the label appear using the mouse as an insertion point. For a long wire the label might appear completely off screen.
This would be good if the wire length were some maximum length. I could see a LabVIEW property "MaxWireLenToCenterLabel" which might be set initially at, say 400 px (approximately 1/4 of a 1280x1024 screen...). The user could change it; if it were set to 0 that might mean "regardless of length", giving us both what we want.
I don't think the idea is talking about putting the label at the center of the wire. It is talking about the justification of the label itself at the particular point that was picked to insert it. Center justification causes the label to grow left and right as letters are added. The left justification means it will grow only to the right. It doesn't matter whether the insertion point is the exact center of the wire or somewhere else.
I always expect the default behaviour to be left justify, that's why I'm really annoyed by the centered behaviour in the icon editor. When the text is centered it is much more difficult to know how it will align with the rest of the icon.
Ironically, in this case I agree with you that the text should be centered...as the center-point in this particular point makes the text balanced equally on the wire, and feels like the best reference for knowing whether you will be able to squeeze your text into the available space.
The optimal outcome of this idea would be that the behaviour is swapped, we get centered on the wire, and left in the Icon Editor...But the most consistent behaviour would be to always go left 🙂