You can obviously do more funky stuff too - rendering a 3D scene to a texture for example. (for imposter rendering)
Yep, I had to do this for our last project... but it was UGLY!
The problem was that 3d on mobiles is simply ugly and our customer wanted it to look nice.
I have posted some of my findings at benhuis site.
'Dynamic' Textures works quite well. I had to switch multiple textures out during rendering.
You can bypass the performance hit from switching them by rendering one set at a time.
The biggest problems I had was with transparent Sprites. IIRC I had to set it on the appearance level.
(I can recheck if needed)