Phones are getting slimmer, and the 3.5mm jack is the single thickest component in the phone. Removing it makes sense from this perspective.
Now, sure, you theoretically could use USB-C for DRM, but until someone actually implements this, I'll apply Occam's razor.
Consider that iTunes and the like have been selling DRM-free music for years now. And that, even though Blu-ray players require HDCP DRM in order to play back video, they don't require it for audio.