How can I strip out default markup for a text field? I have created text fields for first name and last name (which i need as separate fields so i can sort by last name when needed) but the default markup is so cumbersome! they each are nested in 3 divs, and all I want to do is display as a typical manner, ie. Firstname Lastname

How can I strip out the default markup for these 2 fields only? creating a field override template doesn't seem like a good idea, or is it?
Several ways to skin this cat. You can use a custom tpl.php as suggested, or, you can also explore some contrib modules such as display suite or fences.