We have heard that Windows Phone 7 is to get some small, iterative updates in the beginning of 2011 including copy and paste support as well as better, more streamlined developer tools. According to Mary Jo Foley over at ZDNet, someone who happens to be a very trusted Microsoft source, says that a larger update codenamed 'Mango' will bring a whole slew of tweaks and features, possibly including HTML 5 support.
Foley isn't dismissing the small updates in the earlier part of 2011, she is saying that a larger, Mango update may happen halfway through the year. This update may even be a different software version, Windows Phone 7.5, as it will bring a bunch of functionality including the Silverlight runtime, Far Eastern language support and possibly more Exchange Active Sync features.
Foley also has a feeling that the first and second "smaller" updates may be combined together for one update in January/February. There has been no confirmation from Microsoft on the validity of this update, as MS is probably working hard to have a nice launch for Verizon and Sprint for their CES presentation. It looks like we will have to wait for anything really groundbreaking or exciting when it comes to Windows Phone 7 until early to mid next year.