Rumours about Apple bringing solid state or 'taptic' buttons to iPhones have been circulating for years. Ultimately, the Action Button and Camera Control button can now be found across the iPhone 16 series, including the base iPhone 16. However, they differ from what various leakers had claimed Apple was developing for the iPhone 15 Pro and iPhone 15 Pro Max.
In short, both the Action Button and Camera Control buttons are physical buttons. By contrast, Apple's taptic buttons were pressure-sensitive and did not physically move when pressed. Instead, they were said to function more like a haptic touchpad found on modern MacBooks and other the Surface Pro Flex Keyboard (curr. $299 on Amazon).
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Allegedly, Apple eventually cancelled its taptic button program, which it was reported to be developing as 'Project Bongo'. Somehow, the YouTube channel Apple Demo has managed to obtain an iPhone prototype that could well be a Project Bongo prototype. Shared on YouTube, the video provides a look at Apple's taptic buttons that it was working on between the iPhone 13 and iPhone 14 Pro generations.
Dubbed the 'Vesica Piscis' iPhone because of its logo, the prototype has a single volume button that emits haptic feedback from three areas when plugged into power. Moreover, the same hardware has replaced the power button on this prototype, too. Seemingly, this prototype predates another though, which leaked over the summer. Please see Apple Demo's video below for more details.
Source(s)
Apple Demo via MacRumors