During the latest live taping of Diggnation, Kevin Rose went on record by stating that Apple will finally be including copy and paste functionality with iPhone OS 3.0. Mr. Rose has a fairly decent track record when it comes to breaking some Apple rumors, so when you combine that with the necessity of copy and paste on what is already the world’s best phone (albeit with flaws), you start to believe.

DaringFireball has an update for us on the OpenClip framework that was very promising in adding copy and paste functionality for conforming applications. It seems that our copy and paste hopes are about to be let down again.

Apparently, what was allowing OpenClip to work was a loophole.

The OpenClip framework, by Zac White, is a very clever implementation of a fundamentally unwise idea.

Details after the break.