Yes there are genuine reasons to want to add components to a JLabel. Since it is trivially easy to set and swap ImageIcons on JLabels, it's not uncommon to want to use them as a backing image for your GUI.
Edit
You state:
Ahha mean to say, If I wanted my container to have a specific background, then I must be using JLabel as the platform, on which such things can reside ? Am I right ?
No, you don't absolutely have to use a JLabel for this as it is fairly easy to draw a background image in a JPanel if desired. Just draw the image in its paintComponent(...)
method.
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