Unfortunately, though, you can't currently use the new stroke and fill settings that are available for vector shape layers with type right now. Things like applying a dashed stroke would require that the text be converted to outlines. However, Layer Styles can be used as a solution for almost all of these use cases, so I wouldn't classify this as a priority issue.

While I can't seem to see your image, I think I can tell you what is going on: The reason why Photoshop text appears pixelated inside of Photoshop is that Photoshop always displays it at the same resolution as the rest of your image file. That is because if you export it in a format like JPEG or PNG, which is pixel based, this is what you are getting, and Photoshop is fundamentally a pixel-based editor, so what you are seeing is always a pixel graphic at a certain resolution. However, if you export to a format that supports vectors, like PDF for example if you are going to have your graphics printed, both text and vector graphics will be output as vectors and will not appear pixelated, even if you have layer styles applied (for instance, if you use a texture overlay, Photoshop will output the text as a vector clipping path for that texture). There are certain conditions, however, in which cases Photoshop needs to rasterize your type. That is why I try to always place your type as high up in layer order as possible and always check PDFs in Acrobat if any rasterization occured. Text will get rasterized if you put it inside a smart object and apply a smart filter to it for example. If you know your text has to be rasterized and you can't get around it, it sometimes makes sense to work at resolutions higher than 300 ppi as some print companies can actually output at higher resolutions than that, minimizing the jaggies on your text. You can talk to your printer to find out if that is the case.