This is a little related to this question
Define control as variable in Mathematica
But the above question did not answer my problem, as it talks about the f
I was going to give a solution almost the same as Leonid's and use With to insert the code, but he beat me to it, so here's an alternative way. Define a dynamic local function using ControlType -> None that does your styling:
Manipulate[Plot[{f, g + 1}, {x, -1, 1}],
Dynamic[Grid[{{Style["f(x)="], pu[f]},
{Style["g(x)="], pu[g]}}]],
{{pu, Function[{f}, PopupMenu[Dynamic[f], {x, x^2, x^3}, ImageSize -> Tiny],
HoldFirst]}, None}]
By the way, the Style[] in Style["f(x)="] is redundant, as you are not actually setting any styles...