Copy and Paste update will be released in March confirmed.
IE9 mobile will get HTML5 support with full hardware acceleration. MS showed off one of their IE9 test drive videos on WP7 and iOS device. WP7 device was running at smooth 60fps. iOS was running at like 5fps.
3rd party multitasking is coming. MS did a demo of the slacker app where the online radio station was still running the background while they were checking their email. Hold the 'back' button for couple of seconds and a card view shows up on the screen which shows a live preview of the apps that are open that you can choose from to open back up again.
Multitasking was really quick. They were playing a game, presses the start button, checked some email etc, then presses the back button and it was back in the same game instantly.
So multiple ways to multitasking. Either press back button to instantly go back to the last used app or press and hold back button to see a task switcher and choose from the currently open/paused apps available. Very intuitive.
Also showed off a cool xbox 360 kinect demo. Someone was playing dodge balls on xbox 360 but their relative in the same room was actually controlling the numbers of balls and directions of ball to throw at using their wp7 device in real time.