The rumour mill continues and has flared up again surrounding iPhone OS 3.0. This time Kevin Rose, co-host of DiggNation and founder of social media news website digg.com, weighs in on his thoughts about what’s coming up. Speaking live at SXSW’s DiggNation yesterday, he noted that no, neither MMS nor Video-recording capability will be making it’s way in the next version, contradicting earlier reports. Rose’s track record for predicting Apple feature and product updates has been pretty spot-on so far as he previously predicted the new Nano, iTunes 8.0 and other new features.

This time round, Rose foresees the much awaited copy+paste functionality that the iPhone sorely lacks. Unconfirmed methods of how this will work is:

• Users magnify or double tap a word to bring up cut and paste
• Pinch “boundaries” to select word(s); Rose called them “copy boundaries”
• Then you get option to cut, paste or copy

Copy+paste methodology from Gizmodo.

Rose also indicates that background apps will also be a no-show.

Tags: Apple, digg, diggnation, iPhone, kevin rose, OS, rumours, SXSW