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I was thinking of using icloud with custom domains as it appears to be the cheapest, $1/mth but reviews seem mixed.

Anyone that has used this config, please weigh in. Thanks.

It works fine. Lacks a lot of configuration functionality and the web interface is sub par but it works. There is no catch all feature though.

Any suggestions on maintaining Gmail labels in the migration?

Works fine for me so far. From memory (like 7 years ago) gmail’s filtering rules are more powerful, but iCloud has the basics at least