Text displaying methods in unity?

So i'; moving into needing a bit of text in my current project, and so far it's turning out more difficult than i expected.

As far as i understand, there are two main methods of displaying text in unity:

TextMesh,, which is a flat 3D object in the world with text on it
and GUI Text, which is 2D text attached to the screen

are there any others i'm missing?

I could probably do just about anything with these, but one hole in functionality comes to mind. That is, 2D text in 3D space. for example, floating above an object. And possibly fading out at some distance.

I can't be the first to want this, does anyone know of a quick sample script to accomplish it? is there any more efficient method than changing its transform every frame?

 

http://docs.unity3d.com/ScriptReference/GUI.Label.html
http://docs.unity3d.com/ScriptReference/UI.Text.html

http://wiki.unity3d.com/index.php?title=ObjectLabel

--Eric