The important thing to remember is this is a pilot program. I think it's intention is to solicit feedback so COTA can improve their system. Historically, the discussion has always been how bad they are at providing information to makes it easy for people to use. I think this shows how far COTA has come in the last several years.
Cost efficiency is a major factor, too. The cost per text to COTA is about $0.03 and that's included in the $15K (which by the way can be offset with an advertising option to the returned text - "Next Bus in 10 minutes, you've got time to refill your travel mug at cup o' Joe!"
From what I understand, because of the favorable reception received in just two days, the push to "real-time" is already in the works. The hurdle is pushing the data to a place where the service provider can access it. The scheduled feed now comes from Google.
With other agencies like MTD CU, all of their stops are id'd but not all are posted at the stop. You can download a directory to your phone and select the stop you want to text to. COTA's service provider, RouteShout.com offers an iPhone app that doesn't involve texting, just stand next to the stop and run the app, and that's good for the whole system, I think.
The LED sign is a good idea, but my guess is they wouldn't last, based on how some of the shelters are treated. Also signage, I think is a capital expense and not operational, but hey what do I know.