iPhone OS 3.0 features

During the live Diggnation at SXSW in Austin, Texas last Kevin Rose gave details of how the iPhone OS 3.0 will integrate copy and paste. According to Rose to copy or cut a word you would press and hold a word and a magnifier bubble would appear, you can then drag “œcopy boundaries“ around what you want to select and then hit either copy or cut.
In addition Rose said that MMS and video recording would not be present in this release nor the ability to run background applications.
Finally Rose made a mention the Palm Pre and how Apple will match all the features of the handset.