In my opinion the greatest damage or effect is caused by the stigma (label). As soon as we tell other people about our label they will always look at us different from then on. So the next time we make a mistake or raise or voice or do anything which seems unappropriated they will judge it because of our label. It must be because he is bipolar, she acts that way because she has a personality disorder, etc.

Now addressing the problems we may cause on our own due to our diagnosis I agree many believe a much more harsh prognosis then is really there. They just except it and give up. I agree with this notion. I think this sort of behavior could be handled better with more optimistic therapists and pdocs. The pdocs tend to be less emotional.

Yes there are problems with labels, but we can not function as a society without labels. The real problem is the stigma behind the labels and the lack of effort to better ourselves in some cases.