Here's a short video from SXSW with DiggNation hosts Alex Albrecht and Kevin Rose, where Rose goes through a laundry list of iPhone 3.0 features that will allegedly be announced tomorrow during the Apple Press Event.
This video sounds rather alcohol-fueled -- at least it appears that the audience members, who are screaming out their most-wanted features for most of the video, were rather drunk -- and Rose has a somewhat checkered past with his Apple predictions, but his description of cut & paste on the iPhone sounds quite realistic.
He also states at one point that the point of the 3.0 release is to bring the iPhone's feature set to the level of the Palm Pre. If that's the case, then we should also hear about Bluetooth tethering and integrated MMS messaging for the iPhone -- which I, for one, seriously doubt. Of course, we'll all see what's coming tomorrow, and you can get your coverage of the event here on TUAW. Note that the video contains words that may be offensive to some people.