The removal of the cut and paste function in Windows Phone 7 is a terrible step backwards as far as we're concerned. Back when the iPhone lacked the capability to do so, a key point in Microsoft's favor was that their WinMo devices were capable of copy pasting. With the removal, and that the iPhone already has this function, it seems like a really, really, bad idea for Microsoft no matter how "new" or "fresh" the new OS looks and feels.
engadget.com - Ready for another long, drawn-out copy and paste controversy to overtake your every waking moment for a year or two? Good: Microsoft just mentioned in a Q&A session here at MIX10 in no uncertain terms that clipboard operations won't be supported on Windows Phone 7 Series... so that's that.
Source here, but there's really not much more info in case you're wondering.