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A_C_E said:
The iPhone is now more water resistant hence the removal of the home button. It's now a home touch finger sensor pad thingy so water can't seep into the button.

I can probably show you 7 phones released over the past 3 yrs (or three years before this iPhone) that had home/power buttons and even slots for SD cards/headphone jack and even a dedicated camera button...... all the while being "water resistant".