Ideology has trumped engineering, and as hackers, you shouldn't tolerate it. Frankly, all of this has been obvious all along to any competent engineer, since the moment Apple introduced lightening. They described it as a serial bus and talked about how it gave more flexibility. If you think about it for 2 seconds its obviously better to run protocols over a serial bus than to run 30 lines of individual signals, with…
What you're saying is true from an engineering standpoint (serial vs parallel), but has to be placed in the customer's context. In this specific case the quality is bad, operation is unreliable, and the price is high. Consumer devices accept HDMI as input. Serial to parallel video (Lightning to HDMI) is tough without some heavy-duty hardware -- hence the exorbitant cost of these adapters. The SoC design introduces a…
Now since the adapter is a SoC and it's OS is booted from the device, what that means is, every device has essentially full control over how it wants to output HDMI, without having to change the adapter or the port. Right now this is accomplished using this quirky h.264 encode/decode workaround, but this is first-gen, and it doesn't have to stay that way. Future iDevices might load a different OS onto the SoC and output lossless 1080p using the exact same adapter! And without breaking older devices.
It frees Apple from having to define a fixed method of transmitting HDMI over Lightning now, that is then set in stone for the next 10 years, and has to be supported by every future device.
It also frees them from having unnecessary pins, which might become useless in the future, but have to carry over to every new device (a.k.a. 30-pin connector). And knowing Apple, probably THE top priority of Lightning was to have a slick, easy-to-plug-in-n-out, user-friendly connector, which Lightning admittedly does way better then any MicroUSB standard.
Because in essence, the only thing that is fixed about Lightning is the physical shape and pins, so they focused on getting that aspect right and future-proof. How the data is transmitted can be changed on a device level basis.