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The game will render in full 16:9 aspect ratio, with no letterboxing unless your resolution is not true 16:9.
You will see more in widescreen. We use a different projection matrix; there is no squashing or stretching of the image involved.
Considering my main gaming rig and Xbox 360 are both hooked up to widescreen displays, this doesn't make me too happy. According to 2K Games' Elizabeth Tobey, though, it's been brought to their attention:
i'm looking in to this for you and i'll get someone, if not me, to report back ASAP.
UPDATE: Lead designer Ken Levine stopped by the thread to make the following announcement:
Sorry about all the conflict. IG development people (specifically Chris and Rowan who are both on vacation) were trying to take a day off today (we've been working about six months 6-7 days a week). I'm trying to see what everybody's concerns are and consult with the staff.
I know people are frustrated, but we are dealing with internet time here. It wasn't until 7 pm EST that I was able to even talk to anybody in our Australian studio, which is open today (9 AM their time).
I hear you that not everybody was thrilled with the PC launch. And I'm trying to collect information and see what the facts are. PC game development does not function in a matter of seconds or hours, especially when most of the team is on vacation. But I hear you, and we're looking into the issue. I'll only ask you have a bit of understanding as to the time scale that software development issues must occur in.