This just in: Apple showed a demo with a nice, intuitive cut-and-paste operation. You double-tap to select, and use a tool tip with buttons to paste. If you change your mind, simply shake to undo.
[ For the full rundown on Apple's new iPhone 3.0 OS, see InfoWorld's special report ]
Apple said cut and paste will work across all applications. The demo -- a copy and paste of HTML with formatting -- showed it working across e-mail, notes, Safari, and SMS. You can select whole lines or blocks of text, and it works with with photos too.
Finally, we'll be able to e-mail multiple images in a single message.