I generally use normal boring labels, then modernizer to detect if the browser supports placeholders, if so hide the labels and add placeholders to the attributes
Oh, also... once you're in the field, the placeholder disappears and you have no idea what you were meant to type (which is why the plugin slides to the side by default).
This plugin doesn't replace (true) placeholder functionality, so I suppose it's the same as what you're doing except more semantic.