Given a string in my $scope model which contains an HTML entity, how do I ensure that the entity is properly displayed as an HTML character rather than a literal string?
HTML entity - MDN Glossary
http://plnkr.co/edit/0BliljcDkj0vvj3jdEqz?p=preview
<!DOCTYPE html>
<html>
  <head>
    <script data-require="angular.js@*" 
            data-semver="1.2.13" 
            src="http://code.angularjs.org/1.2.13/angular.js"></script>
  </head>
  <body>
    <div ng-controller="htmlChar">{{title}}</div>
    <script>
      angular.element(document).ready(function(){
        var app=angular.module("app",[]);
        app.controller("htmlChar",function($scope){
          $scope.title = "© Acme";
        });
        angular.bootstrap(document, ['app']);
      });
    </script>
  </body>
</html>
                You do not need $sce to bind to strings with html.  All you need is to inject ngSanitize into your app (it is not a core module), and then use the ng-bind-html attribute directive.  
JavaScript
var app = angular.module('app', ['ngSanitize']);
app.controller('MainCtrl', function($scope) {
    $scope.title = '½ Cookies & <span class="cream">Cream</span>';
});
Html
<div ng-bind-html="title"></div>
With $sce. You need to explicitely tell angular the content is html.
<div ng-controller="htmlChar" ng-bind-html="title"></div>
<script>
  angular.element(document).ready(function(){
    var app=angular.module("app",[]);
    app.controller("htmlChar",function($scope, $sce){
      $scope.title = $sce.trustAsHtml("© Acme");
    });
    angular.bootstrap(document, ['app']);
  });
</script>
http://plnkr.co/edit/9iNnRC7AxFptnQZLPtYR?p=preview
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