I've never used "text" speech (in IM, text messaging, and definetly not in real conversation), because I find it dangerously close to the shortened language found in George Orwell's "1984". Its dumbing down our society, and quickly. The moment people began saying "brb" and "omg" in actual conversation really frieghtened me (coincidentally, this happened around the same time shows like "The Hills" and "Laguna Beach" started to rise in popularity). I learned to type and all my current vocabulary in order to use it.
Now, I don't want to get this confused with slang, because slang is how new words are invented. Also being thoroughly involved in hip hop growing up, slang is something I naturally picked up on. So in normal conversation, I have this weird combination of highly refined vocabulary and slang words. Its not uncommon for me to say something along the lines of "Word, man. There Will Be Blood really captured the inner struggles of the main character well, I was compelled the whole time, yah mean?".
But also I think people should keep a good balance, I mean, without some lingo and regional speech, we lose our personalities and where we are from. But if we speak only in those terms, our speech becomes dull and dumbed down. So yeah. I think you are right, the whole current generation of ours is losing alot of the flair of decent vocabulary. Hell, when I was in middle school I was insulted for "trying to act smart" using words like ignorance and arrogant. So I know where you are coming from, and it is definetly not an isolated incident.