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Beth Powell on Bethscadblog (9/19/08 post) wrote an entry on writing text in model space versus paper space. She acknowledges the controversy, but I was very surprised by her opinion. First, she says that most people use model space unless the info goes on all layouts. I do the opposite (depending on 2D or 3D) mostly, though if it was project specific text that would apply to all title block I would use other options.

Secondly, she allows that scaling text is easier than it used to be, as is controlling what you see in each viewport in paper space with the freeze function.

Finally, I think the telltale line is "While I have always dimensioned my model in model space". For those who put text in model space she says that "it turns out that users may have just been taught to dimension in paper space or to have simply not known any other way due to lack of more formal training."

My thoughts:
-Despite who easy rescaling your text is, why go to the extra work. If you do your text in paper space its always the right size. i can't tell you how many times I can look at a printed drawing and tell that the text and annotations where done in model space because they are different sizes when different scales have been applied on the same page.
-One of the beautiful things about paper space and good layer control is that you can draft items on top of each other. Your maso floor line can be under your flats. When you do your layouts you freeze or thaw the correct layers, and everything separates out correctly. If you dimension in model space you have to either create multiple layers of dimensions (which when in model space would end up getting turned off instead of frozen for clarity) so that you can turn on the right ones on paper space. This adds confusion in model space, demands more careful layer control, and/or turned off layers.
-Third, frankly, I can't really fathom putting text on a 3-D drawing in model space, and expecting it to transfer correctly to the inevitable multiple layout views.
-Yet, in interest of being completely honest, I will admit that on a quick, simple, "napkin sketch" I will put text and dimensions in model space. But for those drawings I don't usually bother with a title block at all, or use paper space.

While I hate to disagree with Beth because her blog has lots of great stuff on it, I can't be convinced of her arguments against paper space.

Opinions? Let me know!