'Text' style uicontrols align vertically to 'top', which is different from 'edit' style uicontrols, which aligns to 'middle' (as of R2013a). However, Matlab does not expose uicontrol's 'VerticalAlignment' setting for uicontrol object. Here is the fix.
FIXUILABELS traverses through the java objects contained within the current MATLAB figure and adjust the underlying java objects for all the 'text' style uicontrols so that their texts better line up with the adjacent 'edit' style uicontrols at the same height.
FIXUILABELS(FIG) fixes the uicontrols in the figure with handle FIG.
Caveat: After the fix, 'text' control is positioned 1 px below 'edit' control. I have not resolved this yet without changing the uicontrols' position. If anyone has a solution, please leave a comment!