As I pointed out on SX, this works, and you could probably just get rid of everything except the last two lines, where you'd just do G = ... etc. There must be something wrong with the sageplot parser, I'm going to email the SageTeX author about this. He owes me a few anyway ;-)

And yes, I do get the deprecation warning in Sage itself. That is not the point;
kcrisman (Apr 06 '12)'legend_label'has the same problem.