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.