My expectations for it have drastically lowered, to where I just do not think it will catch on. If it gave complete creative freedom to use the software to make your own full motion games, like I initially hoped when it was revealed, I could see it taking off.
It seems like this is going to fall flat due to just being a gimmicky set of motion and crafting mini games, being released on a console that is drawing a more mature player base than past consoles of recent years.
I will be very suprised if it gains traction. Maybe the lets play community could help it, but outside of that I doubt much will come of labo long term. At least it was a cheap, albiet creative, risk so Nintendo will not lose much over it if it ends up flopping.