If the system uses the ext3 file system, a SCSI controller, or uses labels to reference partitions in /etc/fstab, an initial RAM disk is needed. The initial RAM disk allows a modular kernel to have access to modules that it might need to boot from before the kernel has access to the device where the modules normally reside.
Please note that part of what I said was "not compiled into the kernel a module necessary for boot." Then you said "allows a modular kernel to have access to modules that it might need to boot".
I didn't say anything.. that's from Redhat
Compiling those modules into the kernel obviates the need for loading a module. I regularly build custom kernels and never use an initrd with them. I have never tried specifying a partition label for the boot, but I know I have mounted partitions via labels with no initrd.
That's very nice for you.. Many of us having been building "custom" (aka, building..) kernels for our selves for many years as well.
Nobody is saying you need initrd for LABELS.. you need it for LABELS on your boot partition. The logic is VERY simple to understand.