Yes, That is the best thing. Go to settings, then scroll to Language and input. Click on Google Voice typing to turn it on. Now if you go to text someone and you want to speak the message, click on the microphone symbol which is just to the right of the 123 Sym square. If there is no microphone symbol, and instead it looks like a little gear symbol, press and hold the gear symbol, and the microphone will pop up. Touch the microphone, and it will now appear next to the 123 square instead of the gear. If you want to type your text you can, and if you want to speak it, touch the microphone symbol and speak away. If someone sends you a picture with a text, you can save it to your phone by touching and holding the pic. It will get bigger and ask you if you want to view and or save it. Fun!
Only via a third party app. YMMV on that feature.