EDIT2: Sean Barrett just released Bitmap fonts for C/C++ 3D programmers.
EDIT: another code gem that's worth a look is Font Stash which leverages Sean Barrett's stb_truetype.h.
You can create a texture in which you render all the characters of your font. Then you just draw textured quads with orthographic projection and proper texture coordinates: this approach works when your text is in a language that doesn't contain much symbols: like english. The font texture is created once at the beginning of the application and then rendering quads is really fast.
That's what I'm using and I believe it's the fastest way to render text in OpenGL. At first, I used Angelcode's Bitmap Font Generator tool and then I integrated FreeType directly and built a big texture containing all the glyphs at application launch. As for tips to improve the quads rendering speed, I just used VBO as for the rest of the geometry in my application.
I'm surprised you have doubts about quad rendering while you don't seem to worry about the performance of generating a texture on the cpu, then uploading it, then binding it to finally render a rectangle with it, that for each frame. Changing OpenGL states is the bottleneck, not the 500 - 1000 quads you'll use for text.
Also, have a look at libraries like the FTGL library who converts the whole font into polygons (geometric fonts).
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