I like the compromise D. It fills the screen and yet you can see the sides of the image. I'd like to see how you'd fit a 16x9 image?
Which brings me to raise the question of linearity distortion in new 16x9 displays. Have any of you seen the displays which stretch only the left and right sides of a 4x3 image to fit a 16x9 screen? By playing with the horizontal linearity, width and horizontal drive controls, you could probably do the same to fit a 4x3 image to fit a porthole!
Funny, in the past the set designers and TV repair guys would try to get as linear a horizontal scan as possible and now we live in an age of intentional non-linearity and "stretch-o-vision" (stretching a 4x3 image on a 16x9 flat display).