Consoles are even including widescreen capabilites.
And I don't think you are getting what I'm saying about size, there is literally no size lost with widescreen, you just using the pixels in different places. Same amount.
Say, you have 1024x768, move it to widescreen. You take away some from the vertical size, and add it to the horizontal size. Nothing is lost. IDK what you were looking at that was squashed at a LAN, because pretty much every game has the 16:9 and 16:10 ratios available to the user.