Labels in DNS containing octets >= 128 are
mysterious creatures that have no standard interpretation as text
(because ASCII is the only text encoding used by the DNS standard).
IDNA section 6.3 does not rule out that utf8 encoded labels may be
used in DNS wire protocols in the future.
In which case the specification of those future wire protocols will need
to deal with the fact that UTF-8 forms of internationalized labels can
have more than 63 octets. (255 is an upper bound, though not the least
upper bound.)
"UTF-8 forms of internationalized labels" are not "internationalized
labels" ?