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If the camera stays in place, remove the notch == replace the top strip of pixels with dead space?

Yes, do that. People had zero problems with "dead space" for decades.

They already do that when you full screen anything with the notch.

You can get exactly that experience with the current hardware. Just set the screen resolution to a 16:10 one.

Bingo. It's a nice trick because you get the menu bar space back to.