Hello Scott,
Your code seems correct, and we were not able to find any flaws. Also, as you write yourself, the RadColorPicker event does fire (as it fires in the example provided by us).
If the label does not get udpated, the reason for this is outside of the scope of the code. We are not able to help further, as the RadColorPicker does work properly.
Greetings,
Tervel
the Telerik team