The previous attempt to make an end run around the iPhone's lack of cut/copy and paste involved shared code called OpenClip and relied on a loophole Apple closed in iPhone OS 2.1
This latest tilt at the text editing windmill targets only 2 apps instead:
Pastebud—as the service is called—works using two bookmarks in Safari. One prepares and loads the page you are viewing, ready to select text at the touch of a finger. From there, you can copy any text you want and create a new mail message with that text in it. In addition to that, you will be able to copy and paste in the text field of a different web page.
Check out the full story and video over at Gizmodo. And then let us know if you think this is enough -- for now -- to satisfy your cut/copy and paste cravings?