ByteStrings are mainly useful for binary data, but they are also an efficient way to process text if all you need is the ASCII character set. If you need to handle unicode strings, you need to use Text. However, I must emphasize that neither is a replacement for the other, and they are generally used for different things: while Text represents pure unicode, you still need to encode to and from a binary ByteString representation whenever you e.g. transport text via a socket or a file.
Here is a good article about the basics of unicode, which does a decent job of explaining the relation of unicode code-points (Text) and the encoded binary bytes (ByteString): The Absolute Minimum Every Software Developer Absolutely, Positively Must Know About Unicode and Character Sets
You can use the Data.Text.Encoding module to convert between the two datatypes, or Data.Text.Lazy.Encoding if you are using the lazy variants (as you seem to be doing based on your error messages).