Yes, granted -- still, a Labour party that actually is in the position to win elections, even if divided, is still stronger than a party that's united but with only 150 seats. So you could go either way on what's better.
The other thing to bear in mind is that Labour are severely hampered by being well behind in Scotland. It will depend on how things align but, roughly speaking, Labour needs more than a five-point lead nationally in order to be the largest party if the SNP hold on to (most of) their seats, and maybe a six or seven-point lead to hold a majority.
I'm not going to bother being any more precise than that because anyway there are still two weeks to go and a lot can happen, but I suppose the point is that Labour are still a long distance from victory, and still only in "damage limitation" at the moment.