Programming in Java I have quite often wanted to limit scope within a method, but it never occurred to me to use a label. Since I uppercase my labels when using them as the target of a break, using a mixed case labeled block like you have suggested is just what I have wanted on these occasions.
Often the code blocks are too short to break out into a small method, and often the code in a framework method (like startup(), or shutdown()) and it's actually better to keep the code together in one method.
Personally I hate the plain floating/dangling braces (though that's because we are a strict banner style indent shop), and I hate the comment marker:
// yuk!
some code
{
scoped code
}
more code
// also yuk!
some code
/* do xyz */ {
scoped code
}
some more code
// this I like
some code
DoXyz: {
scoped code
}
some more code
We considered using "if(true) {" because the Java spec specifically says these will be optimized away in compilation (as will the entire content of an if(false) - it's a debugging feature), but I hated that in the few places I tried it.
So I think your idea is a good one, not at all silly. I always thought I was the only one who wanted to do this.