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People who moved to bluetooth got arguably worse sound quality.
For wired headphones, there were very few lightning headphones and they mostly sucked.
Now with usb-c you can get a broader range of headphones (because other phones have gone with usb-c).
either kind needs a dac inside the dongle, or the shell of the headphone, or have a bulky external dac.
3.5mm is still king for decent wired headphones/earbuds.