The new iPhone 2.1 Beta Firmware that was released to some iPhone developers yesterday has been found to have hints at an upcoming Copy and Paste feature. According to MacNN:
One notes that in exploring the Localizable.strings entry under English.lproj in the current iPhone WebKit framework, there are entries for several commands the firmware does not currently support, including cutting, copying and pasting.
Apple's Greg Joswiak recently said that a copy/paste feature has simply not been high enough on the priority list so far, but suggested that there it could be coming in the future. Previously one engineer had revealed that Apple had been working on iPhone copy/paste but that the exact implementation had not been decided.
Now with the introduction of 3rd party iPhone applications such as WordPress for iPhone, basic copy and paste functionality has become even more important.