Apple is not confused. Lightning is a better and much smaller port for phone use. And there are over a billion Lightning devices out there. There's no compelling reason to switch to anything else, certainly not to USB-C.

And no, moving iPhone to USB-C would of course not end the Great Dongle Wars, nor even get rid of a significant chunk of them. Most dongles are necessitated by all kinds of old ports, mostly video, on laptops.