view (or template) to helper to view ... magic

I early Rails 2, I wrote code in my show.erb.html file like this:

      <% display_qs_body(binding) %>

display_qs_body was in a helper file and it passed binding along and
used (as I recall) concat(binding, "text"). concat changed so you no
longer passed binding somewhere later in Rails 2.

I came to believe that this worked but was not really the proper way to
do things. So, that is really what I'm asking... how is a view suppose
to call into a helper which may call into a template which calls back to
a helper, etc.

The helpers may or may not want to prepend or append text to what the
next level deeper.

And, since Rails 3 is just around the corner, how does this sort of
thing work in Rails 3?

Thank you,