How bad is "pretty bad"? There might be some third party plugin but one thing the displacement map does not do is add any shading, you have to do that yourself.
something like this:
edit: another look at that and quick-is-not-good but the principal is correct
With reference to these screenshots:
https://i.imgur.com/f0YFBOF.jpg
1. The cloth and the text layer. A 'chunky' font is best but up to you.
2. Promote the Text layer to Image size in the layer menu.
3. A few things here:
The cloth layer duplicated,
Desaturated: Colours -> Desaturate -> Desaturate (experiment with the variations)
Blurred: Filters -> Blur -> Gaussian Blur.
4. Displacement Map applied to the TEXT layer using the grey, blurred layer as Aux2 Input. Adjust sliders to suit.
Finally a bit of artistic licence, paint in some shadow, example using the clone tool in alignment mode with the source the map layer but a low opacity grey fuzzy brush works as well.