You're missing something, and I'm not quite sure how. The phone knows it's a phone. It doesn't know what's at the other end of the male Lightning connector that's just been plugged in. The smart chip/authentication chip is there to identify what the phone has just been plugged into.
In your example, with all the 'smarts' on the phone, the thing telling the phone what its connected to (being in the phone) *NEVER CHANGES*, regardless of what the phone is being plugged into. The phone doesn't have to tell the *device* what it is. The device has to tell the *phone* what it is.
Here's a fixed version (1), vs your version (2):
Code:
D: device, A: authentication chip, P: Phone, M: Male connector, F: female connector
1) D----A--M F-------P
2) D-------M F--A----P
With the authentication chip (the smarts) on the device-side, rather than the phone-side, the indicator of what it's being plugged into changes *along with the thing it's being plugged into*. The current 'device' in question is a USB sync/charge cable. One that has recently begun shipping is a Lightning to 30-pin adapter. Future devices could be any number of things.
With your version of the layout, you plug the phone into a device, and the only thing it can tell about the device is that it has a connector that fits in the socket, because every time it queries the authentication chip, it gets the *exact same* response.
With the correct version of the layout (which Apple is using), the phone can tell *what type* of device it is plugged into, and configure the pin-out accordingly. It can do this because the authentication chip sends back a different signal depending on what it's built into.
If the authentication chip is as simple as something that passes voltage onto all the lines it's wired to, there would (with the 8 non-ground pins) be up to 256 possible 'device classes' (255, if no signal means no device). If it's more complex (such as high/low voltage, or an actual value on one pin) the possible device class count could be significantly larger.
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It's quite simple. There's circuitry in the iPhone to allow it to dynamically remap the pin-out. There's an authentication chip in the cable (and other devices) which tells the phone what type of device it's been plugged into, so that it knows *how* to remap the pin-out.
Without the chip in the cable (or other accessory), the phone has no way to determine what pin-out it should dynamically configure.
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If you're going to 'negotiate', you need (at least) two parties. At the very least, there needs to be some form of feedback from the connected device that the phone can use to determine how to remap those pins. You're mistaking the 'identifier' for the 'negotiator' as you call it. The 'negotiator' *is* in the iPhone, the 'identifier' is the chip in the cable.