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Worst case scenario: FBI forces Apple to move ALL operations offshore, where they are not subject to Federal overreach and retaliation. Tim Cook understands that if it becomes known that the Feds can access everybody's dick pics whenever they want, iPhone sales are going to go off a cliff. If there is a way of defeating security, it WILL be used, with or without a warrant, but the Feds and by everybody else that can bribe somebody to find out how it works.
If the NSA already had a remote backdoor into every iPhone, the best way for them to convince people they didn't would be to demand that Apple unlock a phone for them, and have Apple refuse! Well played, Apple and NSA, well played! Now criminals everywhere are going to assume all their data is perfectly safe on an iPhone, just like you wanted!
Other missing key features: Water resistance, wireless charging, Micro SDHC slot, replaceable battery. The first two were "must have" features for me, and the reasons I replaced my Galaxy S5 with a Galaxy S7. Yeah, I get it, this is a low-end iPhone for budget conscious buyers, but it really provides no compelling reason to upgrade my daughter's iPhone 5s. I really like the 4" form factor, it's small enough to fit easily in a pocket and usable for people with good eyesight (not me). Hopefully Apple will release a version of the iPhone 7 with A10 processor, 3D touch, wireless charging, and water restance, all with the same size as a 5s... I think Phablets are just silly status symbols anyway; if you want a large screen, just carry a tablet and use your phone as a wireless hotspot.
Oh, and shipping a phone with just 16GB of non-upgradeable memory is just silly these days, unless you're trying to make money by charging customers for iCloud storage.