The bezel is wide because the laptop is so thin. The bezel on the 13-inch is equally as wide. The 13-inch has a significantly bigger footprint than the 13-inch Pro because of this. A bigger display would not have fit, in either notebook.
As for me, I have no problems with screen real estate on the Air. It's got a higher pixel density than the 13", so things are smaller on the smaller screen. It actually has more screen real estate than a 13" Pro.
The 13-inch has a ppi of 127. The 11-inch has a ppi of 135. Those are pretty close, you but you'll probably be able to discern the difference. Screen elements and text will be physically slightly smaller on the 11".
You sound pretty far reaching on how the 11" is able to compete. 135 vs 127 pixel density between the two. You can't even detect this difference with your own eyes. They are meant to look comparible, that was Apple's intention. The aspect ratio is what OSX leverages, not the resolution. We can get into why Apple decided to make the Retina panels look more or less the same exact size as the Air's display. Text and content displayed are about the same (except for the 11" being the odd guy out with 16:9).
OSX is obviously coded with 16:10 aspect ratio.. Every single LCD they've sold is 16:10 besides the Thunderbolt display and the 11".. The Thunderbolt display works well because of its sheer absolute resolution.
The problem is with HIDPI mode making everything bigger than it should.. If they just made the 11" run at a better DPI at the OSX level it would be a lot more useful. I know you can use 3rd party tools to fix this but I didn't want to mess around with it and just opted for the 13"