Yesterday, we learned that copy and paste functionality would not make its way onto Windows Phone 7. This caused a great deal of surprise, especially since WinMo has been able to copy and paste for years. Now an industry blogger at iStartedSomething has received word from someone inside the development team. Copy & paste is a feature that will come "soon" after launch.
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Apparently, the team already knows how they want to put copy and paste into Windows Phone 7 Series. Unfortunately, they don't have the time to implement it right now without delaying the release of the OS. As a result, copy/paste will be hitting WP7S after release as an update.