I don’t want to be overly dramatic about the notch, but even with it in the menu bar, I still think it will be distracting.
There are photos/renderings on Apple's website that seem to imply that you can set the screen resolution so that there is effectively no notch - i.e. it's not notched out of the menubar, it's that the pixels either side of the camera are just turned off and not used.
The camera shouldn't be thought of as a notch out of the useable screen, it should be thought of as apple giving more pixels to use either side of the camera, if you want.
That was exactly my first thought. I don't hide my menu bar so there's no screen loss for me, just a smaller laptop altogether, about 5mm less bezel on top.
Menu bar is persistent in Monterey in full screen apps, I’m assuming they removed the option to hide it?
Does this mean that a USB-C dock that is capable of charging still deliver I/O and charging to the MacBook, or will both the USB-C cable and Magsafe charger need to be connected?
No, they said that USB-C charging is still supported.
However the 16" MacBook Pro is shipping with a 140W charger, which is more than some USB-C docks supply, so you might see some limitations.
I've been hardcoding the height of the Menu Bar into my personal apps (which only I use) for decades. Now I will have to update my code. It was only 24 pixels high until now. It looks like they doubled it to 48 pixels. Does it look like 48 to you?
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However the 16" MacBook Pro is shipping with a 140W charger, which is more than some USB-C docks supply, so you might see some limitations.