Given the constraint that the notch can’t physically be fully covered with pixels, I actually consider the pixels on either side of the notch to be extra pixels. However, the OS should play media in a rectangular shape, i.e. not using the extra pixels on either side of the notch. Of course it would be even better if there was no notch at all, but not at the expense of having less pixels overall, in my opinion. Those pixels can be used for status icons and such. I agree with your other points.