I'm an experienced Flash developer looking into Unity. Its 3D capabilities are great but in my project I'd like to use 2d effects and interfaces. Can unity work with dynamically generated and animated bitmaps? Or maybe there's something like Pixel Benders effects for bitmaps?
What are best practices for working with 2D elements in unity?
You can dynamically create bitmaps using SetPixel(s), however altering bitmaps frequently is not really a good idea since they have to be re-uploaded to the graphics card by using the Apply() function, which is a relatively slow process. Generally you do animation by using UV offsets in texture atlases, or by moving images around in space (or both).
There is a commercial product I know of that makes working with 2D textures inside Unity their job. It's called Sprite Manager 2, and can be found here.