CADaver, you convinced me of the merits of paperspace annotation of the model last year. Given any option, I want to enforce a paperspace annotation only policy at work. I can make it stick for much of our work too, until submittal requests from approving agencies and our vertical design software gets in the way.
We rarely use dimensioning for any of the annotation elements except for leadered notes and the rare aligned dimension. Both Land Desktop and Civil 3D generate the majority of it and they do so in modelspace only. In the case of LDT, I could overcome this by changing the space of the labels with Express Tools, but Civil 3D defeats even this method by making the label only one part of a complex object that can be made only visible or not and that has a limited flexibility in positioning and content.
A new issue concerning submittals has caused me to surrender my policy for plats as well. I can force the annotation to paperspace as described above, but we are now required to submit a dwg file with full annotation all in model space for the various utility agencies to devise their services layout. All of the ranting about inferior technology and unreasonable demands by reviewers I can muster will not change the facts - if I don't provide the required files my project will not be approved.
And so, as I am lacking a convincing argument for the noble cause of keeping all text the heck out of my model, my policy will be in effect only for small site plans and surveys that are not dependent on automated annotation or the whims of stubborn bureaucrats. The only workarounds would require extra time and introduce the chance of errors, particularly should a staff member I have reported about extensively here try to do it (which is usually exactly the case).