Sorta. iOS didn't actually support any form of multitasking prior to version 4, it always did the save state and quit thing except for certain built-in apps like the music player. Then in iOS 4, they introduced the current method of multitasking, where apps are allowed to keep doing their thing in the background for a limited time, enough to wrap up a task, and some apps that need to keep running like GPS or music apps can background themselves.
It's limited, and up to the app developer to choose to use it (or choose to update to support it, for those apps that were around before the update, some apps still don't even support the "save and quit" behavior from iOS3). The reason for all this is that Apple didn't want to go full multitasking for everything because it's actually exceedingly hard on the battery, which is why the iPad has such great battery life, and also why when you jailbreak one and switch on full multitasking it drains the battery in half the time.



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