No, its not just a phone, its a smartphone... a mini computer. People who have previously used smartphone expect Cut and Paste.
Yup, but 98% of users (minimum) don't.
Which is why apple didn't focus on it as a primary target. I'll tell you something the iPhone does better than any other smartphone on the market - make telephone calls in as few steps as possible.
People who see their (often minority) requirements as must have features and can't get themselves v. the rest of users in perspective always bring a wry smile to my face.