The tiny bit of truth that you seem to have choked on is that the 1st generation iPhones in 2007 had an issue with the case interfering with large plugs.

The contacts were all standard, but most existing cables had big clunky molded plastic plugs that wouldn't fit past the case to fully engage. The iPhone case was redesigned in 2008 and no longer required the recessed jack.

It's all tradeoffs. Extending the jack would have had it protrude past the semicircular profile of the case, that would make a lump and spoil the look and feel.

So every time you notice that your new headphones no longer have a giant molded lump on the end of the cord to make it look like a serious 1970's 1/4" jack, you can thank us 2007 iPhone purchasers. It's ok, I can wait.