Latest iPhone 3.0 Rumors: Cut and Paste with Features Equal to Palm Pre

As the iPhone 3.0 OS update looming its March 17 preview, Digg's Kevin Rose once again spilled some Apple rumors that the latest update will have Cut/Paste and features similar to Palm Pre. He hit the nail last time about Nano and iTunes, but can he do it again?

Aside from the rumors Kevin talked about last night at SXSW in Austin during the live Diggnation show, here are some more tipsters buzzing around:
- Users magnify or double tap a word to bring up cut and paste
- Pinch "boundaries" to select word(s); Rose called them "copy boundaries"
- Then you get option to cut, paste or copy
- No video and MMS

Thanks to to Gizmodo for these latest buzz.