Type here: The text is given a background colour, obscuring the background image.

The the text here is on a white background, (and the text is white), so it can't be read:
Also, the text is broken over two lines, due to the text-indent.

Without the text indent, it is not broken over two lines:

The white background is because the second rule is used, not the first:
This also has the same background on the text as the first input box.