Mike and I mentioned this in the podcast, briefly, and so here's the full skinny. Apple has filed a patent for basically all the weird and wacky things you might want to do with a multitouch trackpad (of the kind found on the MacBook Air). Basically, the idea is you slap a certain number of fingers down to go into certain modes - 1 finger for standard stuff, 2 fingers for scrolling (plus some switching around for Exposé features), and so on.
The juicy one, though, is the "Thumb plus 2 fingers" section, which shows how you could switch from scrolling around to go into an "Edit" mode -- one where you could select text, copy it, paste it, and so on. Exactly what the doctor ordered for the iPhone.
Also noted on the podcast, but I'll repeat it here: Once Apple manages to add system-level select, cut, and paste to the iPhone, can document editing be far behind?