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Do you think it's wise to just go with text rather than a banner or logo design? I feel at times it's best to just have original text without a background. Simple and I believe, very effective. What do you think though?

It depends on the site and style of it. I personally don't mind text only logo's/banners, but sometimes having some spicy logo or banner can help interest users even more.

I would also go with a nice little logo, over just plain text. Helps draw users in to your website.