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The idea for the removal of the headphone jack was raised during the development of the iPhone 7. In a nutshell, the "driver ledge" for the display and backlight, traditionally placed near the camera, was interfering with the new camera systems in the iPhone 7 and the iPhone 7 Plus, leading Apple to explore other placement options. It was moved near the audio jack, but it also caused interference with various components, including the audio jack itself, so Apple engineers toyed with the elimination of the jack altogether.
When the headphone jack was removed, Apple realized it was easier to install the new Taptic Engine for the pressure-sensitive Home button, implement a bigger battery, and reach an IP7 water resistance rating, so the elimination of the headphone jack became essential for all of the other features in the iPhone 7.
If one archaic port on the bottom of the phone is the price to pay for a massive upgrade to the camera, a bigger, longer-lasting battery, and a completely reengineered home button, I wish they would have done away with it sooner.
Everyone is so hung up on losing one port and pointing out all the things that Apple "got wrong" with the iPhone 7 announcement today, uninterested in the large number of things they got right including phasing the 16GB storage tier out of every product they carry, new and old. They also upgraded AppleCare+ to allow for cheaper screen repairs and are retrofitting the original Apple Watch with the faster, better, dual-core processor found in the series 2 while still dropping the price.
Getting back to that pesky headphone jack, if you're unhappy about those expensive, ridiculous looking headphones you bought a while back not being compatible with the new iPhone, Apple is packaging an adapter inside the box instead of making you spend extra money to buy one separately. Oh you lost that one? It'll set you back a whole $10 to get a replacement. I mean, I could go on and on but that's fine, let's all just keep whining about how they took out the headphone jack.
I can't wait until next year when the iPhone 7 is replaced by a bigger, better phone with something entirely new for people to get overly upset about. In the meantime, I'm going to enjoy my new iPhone.