MacScoop is reporting that the 1.1.3 update will add copy-paste, which is one of the most requested iPhone features, as well as a few other user interface improvements.
Additionally, MacScoop indicates that the update should provide better stability and performance. The iPhone sometimes suffers from UI glitches and occasionally freezes in its current version.
lonelysandwich.com has posted a video preview of what this Copy-Paste feature might look like. You can see it here.