At an event in Cupertino, Apple today previewed iPhone OS 3.0 Software. The iPhone Software 3.0 update will be released sometime this summer. It will be a free update for iPhone and iPhone 3G users. First generation owners will miss out on MMS and A2DP support.  For iPod touch owners, the entry fee is $9.95. Developers can get access to the new iPhone 3.0 SDK and beta starting today. Apple's latest software update for the iPhone will deliver over 100 new features, most notable being the long awaited Copy, Cut & Paste. Here is the breakdown of what else you can expect from your iPhone with the 3.0 Software Update.

Cut, Copy and Paste
Long overdue, much needed and now on your iPhone. Double-tap on text selects it and allows for "grab points". A contextual menu pops-up and allows you to Cut, Copy and Paste. This feature will be available in all major apps. In fact, now that we'll have copy and paste, this is the method to select multiple pictures for emailing. Yes, you will be able to send multiple photos via email.

MMS (iPhone 3G only)
MMS (Multimedia Messaging Service) will be added, but only for the iPhone 3G. Physical issues with the architecture of the first generation iPhone prohibit it from using this feature. With MMS, you'll be able to send photos, vCards and location info via text messaging.

Turn By Turn Directions
Developers will now have access to core location enabling apps including "turn by turn" directions.

Accessory Developers Gain Access to Hardware
This could potentially be the most exciting announcement of the event. Accessory developers will be able to communicate to the iPhone hardware through the dock connector or via Bluetooth. This opens the door for accessories such as game controllers, keyboards and more.

In App Purchases
Developers have been asking Apple for subscription based app purchases. Let's say you purchase a City Guide. This will enable you to purchase additional cities. It also opens the door for game developers who would like sell additional levels, something that has been quite successful for gaming platforms.

Push Service
Instead of background processing, Apple is ready to go with their Push Notification System. The decision was based on battery life concerns. When you quit an application, it loses connection. A third party server will contact Apple's Push Notification Service, which in turn pings your iPhone.

Voice Memos
A new application that will allow for voice recording. With a compatible connector, this will be compatible with a standard microphone.

Spotlight
Taking a cue from the Palm Pre, iPhone Software Update 3.0 includes "Spotlight". With Spotlight, you can search all your key applications.

A2DP (iPhone 3G)
Support for Bluetooth Stereo Headsets will be introduced, but only for the iPhone 3G.

What's Missing In iPhone 3.0?
Overall, today's announcement addressed a number of issues faced by iPhone users. The glass is more than half full today, despite nothing regarding support for Flash or video recording. The latter might show up in June when we expect Apple will introduce new hardware.