It seems like the spec supports digital and analog audio data. That seems like a potential nightmare for consumers - your headphones may plug in to you phone, but they don't have a DAC, and neither does your phone. Or what if they both have DACs?

I'm sure this will be standardized in the future, and I can see the advantages of dropping the connector. I just really like cool things that can be done with the DACs and ADCs built into people's phones