If an end user photographs or copies a label for their own personal use, they're well within their rights as long as they don't distribute it.
As far as a second label goes, Mac Baren just did that. We have a promo going in which they include a retro Mixture Scottish label with the purchase of one of the new tins. They were printed in limited quantities and I believe that their intention was for them to be treated as a keepsake, not to relabel existing tins.
The cost of labels involves a number of factors - the amount of labels ordered, the use of foil or other special processes, the stock they're printed on, and more. All of the Hearth & Home Marquee labels include embossing of certain elements, which increases the cost.
For me, the bigger issue isn't necessarily what they did as much as the fact that they never asked permission. Some trademark/copyright holders might have been okay with the concept, but they never asked if it was okay. Your next door neighbor might let you borrow his lawnmower, but he probably would be pretty upset if you took it without asking.
Russ