I prefer
<label>
Firstname
<input name="firstname" />
</label>
<label>
Lastname
<input name="lastname" />
</label>
over
<label for="firstname">Firstname</label>
<input name="firstname" id="firstname" />
<label for="lastname">Lastname</label>
<input name="lastname" id="lastname" />
Mainly because it makes the HTML more readable. And I actually think my first example is easier to style with CSS, as CSS works very well with nested elements.
But it's a matter of taste I suppose.
If you need more styling options, add a span tag.
<label>
<span>Firstname</span>
<input name="firstname" />
</label>
<label>
<span>Lastname</span>
<input name="lastname" />
</label>
Code still looks better in my opinion.