Few people have worked on real spaghetti code, thousands of lines with no functions, no modules, just spectacular leaps forward, backwards, leaping forward into the middle of huge loops, leaping backwards into the middle of loops, giant loops nested with and partially overlapping other loops.
I worked on such code, trying to decompose it in order to organize it into subroutines. It resisted my efforts almost completely. Fortran IV I think.
Users were agitating for `continue` to join `break` for control flow interruption. Lua instead chose to provide all the non-structured control flows you would like as a primitive; scoping it lexically keeps it from breaking composition.
I think the real reason why it hasn't been added to the language yet is that it has a weird interaction with the way Lua scopes its repeat-until loops. The justification about having a single control-flow structure is more of an excuse.
Since it's a keyword, you can't create your own ::break:: label, so that would be fine.
The closest I've come was my own code: minsweeper on my Ti-82 graphical calculator. I Separated the program in various sections, then used `goto` to jump where I needed. I was tempted at some point to use the "call program" facility instead, but that would have meant exposing those programs to the end users, so I just lumped everything in one file.
Reminds me why I love functions.
When Dijkstra wrote his famous essay "Go To Statement Considered Harmful" (1968), it was a manifesto against unstructured programming i.e. the spaghetti code. However, the use of "goto" per se does not imply unstructured programming. Donald Knuth wrote a wonderful essay "Structured Programming with go to Statements" (1974) to make this point.
Availability of "goto" in C merely gives us more flexibility, but it does not mean that we should start writing unstructured code.