"This confuses me too. The camera wart is ridiculous, and I bet if they made the device just that slight bit thicker they'd have room to retain the 3.5mm jack."

This looks like another method to lock in the consumer to their eco system and or squeeze that extra buck out of them. Not so much about shrinking in size or technology.

IMO this is nothing more than selling and controlling peripherals that can play with iphone and drm.