I created an open source project for iPhoneDevCamp 2. It allows cross application copy and paste.
Basically, all you have to do to get the benefits is include a few classes and use the very simple API to copy data or paste data. The special part is cross application. Copy a cocktail in Cocktails and paste it into MagicPad (Video of this in action).
There are some limitations. This technically complies with all Apple agreements. It is completely possible that apps that use this wouldn’t get on the App Store. Not for any real reason other than it will eventually step on Apple’s toes. It is also conceivable that the technology this is built on will break in the future. The hope is that the update that breaks this also brings copy and paste support.
If you are interested in looking at some code, send me an email to zacwhite+copypaste@@at@@gmail..dot..com.
Update: Ok people. Go download the code at http://code.google.com/p/touchclipboard/. Willing to hear name ideas
Update 2: Video: http://www.viddler.com/explore/mager/videos/36/.
Ignore all that.
Update 3: Site is up. Check out OpenClip.org.