No, there is still a DAC in the phone.
In the breakdown of the Lightning adapter, they did not find a DAC and an Amp. They found a custom chip with a marking that they ASSUMED was some kind of DAC/Amp chip.
Considering how Lightning interface works, its clearly something different that they use to get audio through their own connection standard.
That is also pointless and costs additional money. Which is the whole point of this maneuver: to rip off the consumer.
Most people driving their cars are indeed charging their phones, and many people use AUX into their car since Bluetooth is both inferior and isn't in every car (and if its not a recent bluetooth implementation, then it REALLY SOUNDS BAD).
Except that apple makes such shoddy cables that they barely last 1 year of use with the most care taken of the wires. My lightning cable that came with the iPod touch 6G is always disconnecting already after literally 1.5 years of use (a couple times a week only) of sitting in my garaged car.
The 30 pin to lightning adapter that i had bought for my other car failed within 2 months of purchase and apple has no warranty at all on accessories.