iPhone OS 3.0 Preview - Cut, copy, and paste, and Undo

Bringing cut, copy and paste into a touch phone is hard. Your choices are to use long-press, double tap, or use an extra button somewhere. Long-press and double tap are kind of secret, so they are really hard to discover by accident. An extra button has the drawback of cluttering the user interface.

Traditional text selection, where the entire text goes blue, has no affordance for dragging the edges to expand or contract the selection.

I think this is an excellent design. I'm also looking forward to try out "shake to undo". I think shaking the phone from side to side maps well to shaking your head when something goes wrong.