If you define zoom as the physical action of sliding a piece of glass to achieve different focal lengths in a lens, then a digital zoom, by that definition is also not a zoom.
Now, the iPhone is not using a teleconverter, which is something that is added to the lens, but a different lens plus sensor alltogether to create the effect of a zoomed image. And this is the point where the old definitions break down; is a camera the sensor or is a camera the device that creates the picture? I think it is the latter, and in that sense I think iPhone 7 plus does have a 'discrete' zoom.