Apple:

The free iPhone OS 3.0 Software Update includes some great new features, as well as all the features from previous updates. iPhone OS 3.0 also lets you run the next generation of iPhone apps, like peer-to-peer games and more. If you’ve never updated before, now is the perfect time.

Cut, Copy & Paste

Quickly and easily cut, copy, and paste text from application to application. Select entire blocks of web text with a tap. Copy and paste images from the web, too.

Landscape Keyboard

Want more room to type? Rotate iPhone to landscape to use a larger keyboard in Mail, Messages, Notes, and Safari.

MMS (not on AT&T)

Send MMS messages and include video, photos, audio, and contact info.2 Even tap to snap a picture or shoot a video right inside Messages.

Spotlight Search

Find what you’re looking for across your iPhone, all from one place. Spotlight searches all of your contacts, email, calendars, and notes, as well as everything in your iPod.

Voice Memos

Capture a memo, a meeting, or any audio recording on the go. Voice Memos works with the built-in iPhone microphone or with the mic on your headset.

Improved Calendar

Create meetings via Microsoft Exchange ActiveSync and subscribe to calendars with new CalDAV support.

Buy Movies, TV Shows, and Audiobooks

Download movies, TV shows, music videos, and audiobooks from the iTunes Store on your iPhone.

And so on.