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What happens when "USB-D" is designed? Will it be illegal to upgrade to in Europe?

Also I wonder if this will push Apple to go wireless-only.

The connector can still remain the same while the internal changes. USB-C is just the connector head. Look at USB4 that still uses the USB-C head.

Yes, but are we now stuck with the USB-C connector head? Is a smaller form factor now impossbile?