> Under the screen has image quality issues.
I don't care. You need to process the hell out of a selfie image so you don't look like a goblin anyway. I'm sure the ML wizards at Apple can figure this out.
> A thicker bezel means less screen space.
The notch is a huge bezel with cutouts.
> Sticking up over the display is a worse compromise. Putting it on the bottom of the display really isn't ideal.
I agree.
> For most people, the only thing it covers is the menu bar.
It's not about what it covers, it's about harmony. A small hole is also superior, though most Android phones do not get the positioning right either. No, I don't care about Face ID, especially in the era of COVID. A finger print reader on the side or on the back is superior.