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Electrical Building Services. We've used annotative text, multileaders, dimensions, blocks, etc. in model space since they were first introduced. Aside from some general notes, annotation has always been placed in model space, even before annotative objects came along. Anyone placing annotation in paper space gets their knuckles firmly rapped with a drafting scale.
I'm a civil CAD technician for our municipal services division. Our company does not use annotative text or dimension as a standard. However, we have consultants that do. In scenarios in which we receive drawings that have annotative text or dimensioning, we "usually" keep them annotative and then add, if necessary, scales to work in our drawings.
The Infrastructure division uses annotative text in model space in drawings. Building Science (Structural, Building Envelope) doesn't. In our case its the end user that dictates the requirements we frequently send dwg files to clients, whereas infrastructure rarely does. None of us are uncomfortable with either method, but it means that on shared drawings we'll have two types of text. Sometimes, conversion or replacement is necessary.
I am in structural branch. Our company create annotative objects in model space and plot drawings in layout. The layout contains viewports of different scales to match the various annotative scales.