Hmm... seems there's been an addition to the standard Selection tool and rotating via that tool works. Although it requires much more attention to where you click to start the rotate.
So, I assume the Free Transform tool now only alters text frames and not any text within the frame. Is that correct?
Free transform rotates the frame and the text for me.
Okay, I've figured it out.
I have a habit of hitting... a.. then e.. on the keyboard from years of Illustrator use. (Direct Selection tool, then Free Transform tool)
So, if you have the Direct Selection tool (the white arrow) active, select the text frame, then select the Free Transform tool .... only the frame rotates. Text will stay perpendicular to the page.
If you have the Selection Tool (the black arrow) active, select the text frame, then select the Free Transform tool... both text and frame will rotate.
This is new to ID CS5.x. WIth IDCS4 it made no differnce which selection tool you used to select the text frame.