Digg's Kevin Rose has a solid (but far from perfect) track record when it comes to Apple rumors, and he just drove the nerds of SXSWi crazy with his latest gaze into the crystal ball: he says the iPhone 3.0 will have copy and paste. Kev says that the interface is much like the magnifying glass -- you use two fingers to select the text you want, and then you can cut or copy. Sure, that's great, but we think the bigger news is that Rose says 3.0 won't have support for background apps -- which makes his claim that that 3.0 will bring the iPhone "up to speed with the Palm Pre" a little suspect. We'll find out what's what in just a few days, but in the meantime check the video of Rose after the break.

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iPhone 3.0 to have copy and paste, Pre-like features -- but no background apps