That was a lot of work!! Finally in HTML5 you can placeholder text to your form fields with a simple HTML attribute:
<input type=”text” placeholder=”Last Name” />
Check out this Demo to see it in action: http://www.w3schools.com/html5/tryit.asp?filename=tryhtml5_input_placeholder
*BAD NEWS: It does not work in IE9 and below. It is currently supported in IE10 (only released as preview when writing this). It will work in most other browsers. Unfortunately for the time being, not working in IE9 might be a deal killer (at least for a while).