Now that language fallback is applied to mw.wikibase.label() as well (rEWBA9efbaaf23d23d202aa78df86b4d496f6d78f0bd7), we were able to reduce missing labels in cswiki to from 4,000 to 400. That would be nice if it didn't cause data to be shown in a different language from the content language. This could result in complete banning Wikidata data from some client wikis.
I suggest to have true/false check as the second parameter, meaning whether to choose other languages in the fallback chain.
A workaround for this is loading each entity which could cause performance issues.