Finally came across another App which provides some type capability. Photogene, along with the more typical photo App functions, offers up some burst and other shapes that have a type function. Closest I've seen so far to something one would see in the big layout programs. Also finally stumbled onto how to do screen grabs on the iphone; hold down Home button, while pushing on/off switch at top of iphone. You'll hear the shutter click you would get on your laptop or desktop.
In these, you'll see a screen grab shot while in Icycloid, with type added first in Type Drawing and then in Photogene along with thought bubble and frame.
This is very basic as a cover design, but still... all on the iphone.