In an interview with Extreme Tech, Apple product head Greg Joswiak explained the lack of cut and paste in the iPhone: it's just not a priority right now. He says Apple worked its way as far down its "priority list" of features for firmware 2.0, but just not far enough to reach cut and paste. He then went on the explain why there wasn't a full native office suite ready for App Store launch, and that turn-by-turn navigation is allowed and likely to be released soon, though by a third party.
According to Joswiak, David Pogue's report that the iPhone's GPS antenna is too weak for real-time navigation is false. He cites "complicated issues" as holding up development, but expects to be "dazzled" by software makers in the near future. When pressed about the availability of an office suite, he says that the lack of a cross-application file structure would make such programs difficult to design. Though honestly, I'm not even sure I'd want a text editor if I couldn't select or copy text. [ExtremeTech via Crunchgear]