We can gather that from the things that were left out:
- cut, copy, paste: Apple has now admitted they wanted to put this in, so the omission must have been a desperate decision
- tasks: If they couldn't add tasks, then they were beyond cutting features and deep into slashing organs (emphasis mine):
Entirely Random Notes On iPhone 2.0 - Inside iPhone BlogSearch only looks at contact names.
... There appear to be crashing bugs with both many third party applications themselves, as well as the OS itself. Prior to updating to 2.0, I can't recall the last time my iPhone reset. I've seen it a half dozen times already so far, however.
Searching in Contacts is nice. However, I find I still generally just scroll for the contact, and the search doesn't look inside each contact, just at the name...
It must have been really, really, ugly in Cupertino over the past few months.
I'm definitely feeling sympathy for the iPhone development team. They must be toast. It's going to take more than a few months to get things patched up. Corporate customers are going to want to hold off on significant deployments until next year.
Update: More death march evidence