Yet when you take the same logic and apply it to phones everyone is up in arms. That logic doesn't apply.
What you miss is that Ipad mini is 7.85 inches 3:2 ration vs a 7 inches 16:9 ratio. When Ipad mini play movie, it has about the same size HD movie space as Nexus after you account for letter box. 16:9 ratio is for movie and 3:2 ratio is for web serving and book reading. Android take the position that movie is everything in a mobile device and has to suffer the consequence of the choice.
In a phone, bigger size won't work. Can you image a 3:2 ratio Iphone that has the same movie playing area of a 4" Iphone 5 size display? The 3:2 device will be in the neighborhood of Note 2 and it is way too big to be consider a phone that one carry in their pocket. Iphone 5 is a design compromise but given the restriction of how big a hand is and how big a screen need to be.. That is as best as anyone has come up with at this point.