With the announcement of iPhone 3.0 this Tuesday, Apple could be talking about the most heavily requested software feature copy and paste.

Kevin Rose revealed in a live taping of Diggnation at Austin’s South by Southwest festival that he has “confirmation” that copy and paste would be coming to the iPhone.

He also says that his source, a “friend” that has been correct in the past had explained to him how copy and paste would work.

A user would double tap a word to bring up a magnifying glass, the user would then use their fingers to extend the “quotes” to cover the necessary text and either cut, copy, or paste.

Kevin also says that iPhone 3.0 will include all of the features necessary to bring it on par with the feature set of the Palm Pre. Kevin does begin to mention something about multitasking but is interrupted before finishing.

Two rumors that Kevin dismisses during the segment are the addition of MMS which wasn’t mentioned to him and video recording which was said to be technically difficult because of the way the iPhones memory works.

Kevin Rose has a mixed track record so before all of you get your hopes up about copy and paste do remember that according to Kevin the iPhone was supposed to be released for Verizon and was going to have 2 batteries.

AppleInsider | Late rumor has iPhone 3.0 getting copy-and-paste, multitasking.

On an slightly related note, here is my wishlist for iPhone 3.0:

  • MMS
  • Tethering
  • Notes syncing
  • The ability to hide unused default apps (contacts, stocks, etc.)
  • Push Notifications
  • Syncing over Wifi
  • Video Recording
  • Turn-by-Turn GPS
  • Support for the volume buttons on Apple’s new headphones
  • Copy and paste