I've played with my phone while riding my bike on a bike trail, taking pictures and stuff. That was tough enough, but responding to text messages? I couldn't do that, especially not with any cars within 100 yards. As with others, my phone sits in my panniers and I have to get off the bike in order to use it.
Living in a college town, I do see kids doing it, but not with the same frequency as those kids riding the motor scooters. I think the kids on the bikes must get more scares.