I don't know about you, but I find having lots of ERTs in my document
distracting and a bit annoying!
My solution is similar but instead I use the math mode - that way I see the
actual symbol I typed...
eg, include the following line in your Preamble
\newcommand{\hho}{\text{H}_2\text{O}}
Then inside your document simply type Command-m (or Ctrl-m on a PC?) which
starts the equation editor
enter \hho as your equation and hit space a couple of times.
You should now have a nice compiled H20 to look at in your LyX document.
So that I can see for example the Angstrom symbol I type Command-m \text
space \AA Command-end (ie \text{\AA}) so that I actuall can see it rather
than an annoying ERT.
Chris.