Looks like using expensive technology to provide exactly the same effect that was provided by the cheap starch-based adhesives that were used for paper when I was a child.
I really hate the people who have thought that it is a good idea to replace the water-soluble starch-based adhesives that were used for labels on bottles when I was a child with modern adhesives that are insoluble in water and which are a huge PITA if you want to reuse a bottle and you want to remove the labels from it.
No expert but water-soluble adhesives like wheatpaste and such rely on the water getting absorbed or evaporated. In an industrial setting I guess that makes it too slow.
Also in an industrial setting I can see an advantage of eliminating an ingredient.
As for removing labels off bottles, I seem to recall my grandpa putting the bottles in a bucket of water and washing soda (sodium carbonate), and just letting them marinate for a good while. Wasn't super hard but a bit of a chore like you say.