UPDATED 2: As commenters have pointed out, Rose doesn't say "no MMS", he says he doesn't know about MMS. He does say Apple is not providing Video Recording due to technical limitations: writing too frequently to the NAND Flash memory would burn it out. (While it's true writing to NAND is destructive and thus, there are limited write cycles, Dieter tells us devices like the HTC Touch Diamond and Sumsung Omnia allow writing to internal storage, so who knows?). Basically, the gist of Rose's rumor is that iPhone 3.0 will have Cut/Copy and Paste, and "Palm Pre"-like features...

UPDATE: MacRumors has posted slightly clearer details on Rose's description of how cut/copy and paste works, along with a link to the video (NSFW-L):

Double-tap to bring up a magnifying glass with two quotes, you drag quotes around text string to select, and then you can cut/copy and paste.

ORIGINAL: Kevin's back. Back again. Digging iPhone rumors. Tell ya friends! Not iChat Mobile this time, unfortunately, but Gizmodo is reporting that during his SXSW live Diggnation, Kevin Rose - who's flubbed almost all iPhone rumors, but nailed iTunes and iPod nano scoops -- put it on the line again for iPhone 3.0 pre-Preview Event:

  • Cut and paste (as previously rumored) using double-tap to zoom and activate, pinch boundaries, then options pop up.
  • "Palm Pre" features. (Could that be integrated social network contacts, unified messaging, better notifications, multi-tasking?)

Also, what will NOT be included?

What do we think? Will Rose be right or wrong this time? Tuesday's just under two days away!