There is no official word on it yet, but Kevin Rose is expecting the upcoming iPhone 3.0 update to finally feature cut-and-paste. Kevin feels that the 3.0 update might even push the iPhone 3G to the Palm Pre’s level. Some may beg to differ as the Palm Pre has different hardware. We of course hope that Kevin is right, as he has been most times!
Seen at: ubergizmo 
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