Just two days ahead of time, Kevin Rose at a Diggnation Live show at SXSW mentions some things about what’s coming, and what’s not, with the new iPhone 3.0 software.

Kevin says the iPhone 3.0 will have copy and paste and 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.

However the new OS wont have support for background apps and he has not heard about MMS functionality.