Illustrator Variables for Label Production

[Freawolfe]

In the final stages of template design for 5 label sizes and about to produce 65 skus using Adobe Illustrator Variables.
I am hoping to get insight from those who have used Illustrators Variables Successfully & Unsuccessfully and an pitfalls to watch out for?
My client is Illustrator based with no option to change for their in-house production of labels. The client is also a web developer so the broad styling like code is important.

Below is some background information of what I did research as well as get advice from a few professionals.
Thanks,
Frea Wolfe


Possible Workflows for Labels based on my research and my resources :

Using Illustrators templates, specifying colors and character types  otherwise how you have been but, just packaging the files into individual packages with all files contained instead of the folder hierarchy you currently keep, which has a link and font folder.
Deliverable: Packaged Illustrator files that collects links and fonts in folders

Using Illustrator CS4+
Best Solution is Template using multiple artboard/custom sized pages can export files in various format, if use links keep all is same folder don't use sub folder and link will update automatically like the logo only, otherwise files would be self contained.
Deliverable: One Illustrator file with multiple artboards inside all in one folder along with logo
Resources:
http://blogs.adobe.com/adobeillustrator/2009/03/working_smarter_with_templates_1.html
http://helpx.adobe.com/illustrator/using/artboard-overview.html#printing_and_saving_artboards

Using InDesign CS 6- latest and greatest- Data Merge using images, this seems great however you can't create a file in InDesign and have editing capabilities in Illustrator, they just don't play well together even if you try an intermediate pdf.
Resources:
http://help.adobe.com/en_US/indesign/cs/using/WSa285fff53dea4f8617383751001ea8cb3f-6c3ca.html#WSa285fff53dea4f8617383751001ea8cb3f-6c2ea

Paid Solution for InDesign- $5K+ this is what commercial printers are using to assist customer in web to print asset solutions
www.xmpie.com/