I have no problem with texting. A clever and inventive way to save money. It seems to be just an updated version of Shorthand and serves a similar function...saves time and money.
However it is not a new literacy anymore than Shorthand was. You still need to understand the underlying language before you can read and text effectively and the number of words that you can creatively shorten is indeed limited. It's a bit like the calculator. It sure didn't replace numeracy.

Texting might be a new language but it's not a new literacy. In a thought provoking article, the one thing that's missing is an understanding of communications. There is no point in recording a thought in text (or heiroglyphics) if the person reading that thought can interpret the message differently from what was intended, or indeed, fail to understand it completely. Texting is no different from other forms of jargon that have been created by the legal profession, politicans or the military - language that assumes knowledge of, and experience in, dealing with the jargon presented.
Use of jargon is always risky because it assumes the reader has the same knowledge and experience as the author. Given that most mobile phone messages have a social undertone it is probably acceptable for most communication over the phone but it represents inappropriate use of jargon when used for writing essays, policy papers or letters to the editor.

Texting is fine in its place. I predict it will die out as the phones that drive it become more sophisticated and communication becomes more oriented around voice rather than text.

There will always be a place for the written word and people could do no more than remember the following words of wisdom :)

Punctuation is the difference between
I helped my uncle, Jack, off his horse. and I helped my uncle jack off his horse.

I see that the brain-boiling features of mobile ‘phones are in the news again. This time a neurosurgeon is convinced. Just what kids need to finish off their already underused brains.

Any other ‘new literacy’! More like new illiteracy putting a finishing touch to the inability of youngsters to read, write and speak their own native language. Whether the young horrors are texting or talking face to face, they are totally incapable of communicating with other generations. They have nothing to say, no matter how they say it.

It will be interesting to see how far down society will go after the generation brought up on mobiles has to take over.

In the meantime, my main concern with mobile users is their brainless use of their stupid instruments while they are driving a car. That is far more important than blah from an academic writer whose sort is to blame for the dumbos being turned out of the education system.

Abbreviated texting is seen in other languages too - in Indonesian I've seen 'trims' for 'terimah kasih' (thank you).

Trouble arises when the recipient doesn't understand the clipped text.

I'm 63 and a former C'wealth policy person whose business was words. I place great value on literacy and the subtleties, nuances and power of language (and languages). Everything written has its own 'register' - high, middle or demotic - but in a world where language is power: job applications requiring statements addressing formal selection criteria, for example - I wonder how many of today's frenetic texters make the elliptical style so 'normal' that they lose, or never develop, the ability to write English that is effectively functional for serious purposes.

Some suggested reading:

http://crabbyoldfart.wordpress.com/2009/06/15/god-damned-young-people-and-their-cell-phones-make-me-furious/