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Engadget – As promised, Apple just debuted its upcoming iPhone OS 3.0. Much of the news seemed developer-centric, but there are certainly plenty of consumer implications down the road, along with long-awaited functions like copy and paste, A2DP, MMS and universal Spotlight search.

Mac Rumors reports:

In-App Purchasing: Allows developers to sell additional content from within applications. Highlighted uses include magazine subscriptions, eBooks, additional levels and items for games.
Peer-to-Peer Connectivity: Find other devices running the app via Bonjour over Wi-Fi of Bluetooth. Good for gaming, but also other applications for sharing data.
Third-Party Accessory Apps: Allowing accessory manufacturers to create applications to interface with their hardware accessories.
Push Notification: Rather than using background processes that hamper battery life, utilize third-party server to push badge, text, and audio alerts from applications.
Turn by Turn: Apple will allow developers to use CoreLocation for turn-by-turn GPS directions.
Cut, Copy and Paste: Available across all apps. Shake to undo or redo.
Landscape keyboard: Available in all key applications, including Mail.
MMS: Picture messaging now available.
Voice Memos: Record notes, lectures, interviews, etc.
Spotlight Search: Available across all applications. Systemwide search available from main home screen by flicking to the left.
A2DP Bluetooth: Support for stereo bluetooth headsets.

Tethering, another much-requested feature, was addressed in the Q&A section of the event. Apple is building the client side of tethering into OS 3.0, but cooperation from carriers is also required in order for it to be offered. (read more)