Who thought Exif Orientation was a good idea? It's a needless complication of the file format. It's not like iPhones (or any camera) lacks the computing power to rotate the image before saving it.
36MB of RAM just for raw image buffers would have been quite expensive in 1995. Simply tagging some extra data onto the image to say which orientation it should be presented in takes almost no extra memory or processing within the camera, some big desktop PC could easily rotate the uncompressed JPEG to perform a "lossless" rotation after the fact (ie: uncompress JPEG in wrong orientation, rotate, present to user).