Placing as a PSD or PDF is the way to do this.
To make changes to the text, right-click from within InDesign and use Edit Original. This will open your document in Photoshop, and the saved changes will be applied when you return to InDesign.
As a side note, for text with effects, Illustrator may be the best place to create it, and then place it as an AI into InDesign.
As for layers, you can control which layers in a Photoshop or Illustrator document are shown from within InDesign, but you cannot work directly with the layers. Each program has its strengths and weaknesses, and they are meant to be used together.
Actually placing it as a PDF would be a far better choice. You won’t be able to edit it in InDesign but the text will remain vector.
Use the PDP file extension for easier use with edit original.
By golly, I think this is going to work -- and the sad part is that I knew about the Edit Original right click option, but it didn't dawn on me. I'll give these suggestions a try, because I do like the style options in Photoshop. I'll report back. Thanks!
Small Town Gal