Labeling will always be labeling. Someone is going to be offended, no matter what word you use to describe.
Unfortunately it is one great evil of assembly line type education. One size will never fit all.
Every student (no matter his/her ability) should have an IEP (Individual Education Plan) that the student, teacher(s), parent/guardian and any specialist is involved in the composition of. It should be set up as a contract and taylored to celebrate the student's interest and expand his/her abilities.