Aesthetically, the bigger the resolution, the more likely it'll screw up the look of a level. 800x600 already messed up the look of many levels. It's not just that - the bigger the resolution, the more CPU it takes. Any bigger resolution has the potential to be a lagfest with levels that contain scripted visual effects. Also, the bigger the resolution, the greater the illusion that your sprite appears to be moving slower than it actually is.
I have a widescreen monitor myself, and while it is a bit stretched, it's a whole lot better than 640x480 fullscreen.
The same field of view with a bigger resolution would come out with the same exact results as before - a stretched screen or a screen with black bars.
TL;DR: JJ2 is too old for bigger resolutions.
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