Google Labs is where many of the neat Google services and products were first introduced, including Google Suggest, which grew into Google Instant.
That being said, Google said that labs within products will continue to remain. So if you are using Gmail Labs, that will still remain. Google said, "we don't have any plans to change in-product experimentation channels like Gmail Labs or Maps Labs."
That being said, Google Labs will be missed by many Google enthusiasts.
Goodbye Google Labs!