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Why is Type > Area Type Options greyed out? I cannot center my text vertically in the text frame. It defaults to top and I cannot find an option to change it.
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Without seeing what you have selected.
If you select the type with the regular selection tool (arrow), do you have a choice in the Type menu for area or point type?
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Only area type can be aligned to center.
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so there is no way to have the text align on the baseline or middle of the text frame? Maybe I'm thinking of InDesign, but I know I've done that before
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There is no area type in your screendump.
Point type has no frame.
You need to convert your Point type to Area type first.
https://helpx.adobe.com/illustrator/using/creating-text.html#creating_text