I got the nice, old-fashioned embroidered sew-in ones for my mum's clothes, and then found that the care home put huge iron-on ones with her name in big black marker pen on everything. Obviously, they thought my choice of labels was too hard to see easily. Their great big things spoiled all her clothes, and they looked like they would be quite scratchy and irritating, too.
I'd agree about putting labels on everything, not just clothes. Everything in a care home goes walkabout at some point.