I can appreciate the hurt feelings and the unhappiness behind this act of defiance, but, really, no one cares about record labels anymore. No one cares that Harvest Records was dishonest to an artist--that's what the label is there for. No one cares whether or not a business interest kept its word and did what it was obligated by contract to do--the law is owned by the fellow with the best lawyer.
Morrissey will always be a big deal and no record label can contain him. And, no, a group of like-minded artists is not going to go off and start their own record label. I'm shocked that there even is a Harvest Records.