Well, if it’s not feasible to move from USB 2.0 to 3.1 due to cost or size/power requirements of the host controller interface, and you’re not going to offer display port alt modes, then there’s really no reason to transition from Lightning to USB-C on iPhone. There’s little to be gained.
But Apple could add USB 3.1 controller functionality on the SoC if they choose. The IP is available for license, Cadence for instance offers Fresco Logic’s USB 3.0 and 3.1 xHCI. Instead of a 6mm x 6mm discrete TFBGA package like the iPad Pro has, it would then have a much smaller footprint, who knows maybe 3x3mm. Since the iPhone 8/X, iPhones already have a USB-PD controller.
Which is why I have always said Apple aren't transitioning to USB-C on iPhone. That was before USB4 spec. I will need to read the spec when I have time to see what segmentation they have done to it.
Theoretically, Apple could make / design and Fab their own controller, in the size/ power requirement they want, but current controller are being sold at such a price Apple may never amortised the cost of doing it by themselves. And seriously, apart from a few percentage of users, who needs 5 / 10 Gbps transfer speed on an iPhone? Apple has been counting pennies with their BOM cost, I just don't see that happening. I would love to be wrong though.
Again this is before USB4, hopefully something in the spec provides Apple with the incentive to transition out of Lightning.