As you expected, Google was going to drop the mobile friendly label. Well, as of this morning, the mobile friendly label is officially gone.
Here is a screen shot showing the before and after.
Before with the mobile friendly label:
After, as of this morning, without the mobile friendly label:
This doesn't mean the page is not mobile friendly, it is. It just means Google has officially removed the label from showing up in the mobile search results snippet. Google still has a mobile friendly ranking signal but again, the label itself is now gone.
RankRanger does track this label in their Google features tracker and it shows a huge drop off in the number of results that show the label. So it seems Google has pressed the button to officially remove them as of this morning:
Forum discussion at Twitter.