Does the video player truncate videos? The iPad screen has an aspect ratio of 4:3. 1080p video has an aspect ratio of 16:9.

I tried playing a 1080p video on the built-in player and got this:

|--------------|
|   |      |   |
|   | iPad |   |
|   |      |   |
|--------------|


where the outer border is the movie resolution (meaning, the video is getting chopped). I am a bit surprised that I couldn't find a mention of this anywhere online. Does the iPad really truncate 1080p videos by dropping pixels on the left/right of the frame?
This is simply an option to allow people to change between filling the screen or showing the black bars.

It can be switched by double-tapping the video, or tapping the two arrows button on the toolbar.