I am a huge fan of getting stuff out and then improving it over time. Sure, people complained about the lack of cut & paste, but it sure would have been a huge mistake to delay selling the iPhone over that. With OS3, all the really big omissions will be taken care of: Cut & paste, search, landscape keyboard & MMS (personally I use the first two heavily on my Blackberry and found the keys on the vertical keyboard way too small on the iPhone for fast typing).
But that is not the big news. The big news is that the iPhone, which already was a great gaming platform, will be an awesome gaming platform with OS3: peer-to-peer connectivity, push notifications, subscriptions and in-app payment will allow for incredible multi-player games with virtual goods economies to be delivered on the iPhone. That’s great news for our portfolio company Zynga and others targeting games to the iPhone, such as ngmoco.
Further APIs, such as the ability to interact with peripherals, will enable a large number of new applications. All in all OS3 will be a major milestone for the iPhone as a platform and I very much hope that it is delivered on time and with all the previewed capabilities.