Diggnation host Alex Albrecht hired some iPhone application developers to work on various projects. His most recent application that was added to the iTunes App Store is called Duel [iTunes link]. He released the game through a company called App Dragon.

To play Duel with a friend, both of you need iPhones and need to connect to each other through Bluetooth. After that, there is a countdown and you have to point your iPhone at your friend horizontally similar to how people in the Wild Wild West did it. Alex Albrecht was a co-host of former TechTV show The Screen Savers.

At a live Diggnation in Austin, Texas Kevin Rose predicted that copy and paste will be included in the new, upcoming iPhone 3.0 software upgrade.  Roses’ source for this also predicted that the iPhone will be brought up-to-speed with the features that Palm Pre has.

Background applications is not expected to be as part of the upgrade.

The way copy & paste would work is that when you double tap on a word, quotes will appear in the magnifying glass and then you would select the copy boundaries that you want to paste within a sentence, paragraph etc.  MMS and video recording will unlikely be part of the new release.

[via WorldOfApple]

Part 1: Diggnation-style

Part 2: Twitter