I got back after lunch and pretty much jumped right to the Engadget liveblog to read about the upcoming iPhone software.
I have to say that the 3 biggest features I am looking forward to is the Push Notification, Spotlight, and MMS. I can see how cut and paste will be useful and how Apple seemed to elegantly implement it. I just probably need to play with it to see how much I will use it. Cutting a URL from Safari and pasting it into an email or a SMS is probably where I would see using it the most.
The only downside of course is since I have a first gen iPhone, I can't do the MMS. Undoubtedly the 3.0 phones will come out before July, but I can't see upgrading unless there is a feature I can't live with out. I have already lived without the GPS and the 3G for almost a year and they both were big reasons to upgrade.