"Should HP be surprised that collector will make reproductions of these labels with or without their approval?"
I don't see how surprise or lack of surprise is relevant. A walk through the Beijing Silk Market will convince you that you can buy a fake of anything.
The issue is that the names and trademarks are theirs and they are legally protected. I asked permission for someone else to reproduce the labels. I was expecting a simple NO, but I was pleasantly surprised that the answer was OK with what I consider to be a minor limitation. If you think you can work a better deal, then by all means go ahead.
I also don't see how fake labels on real HPs would increase their "collectibility" or value - except perhaps for a short time before the market realizes that a "good" label is a matter of paying 28 cents rather than being lucky enough to find a mint sample.