What is the relationship between screen size and application design? Is it a two-way street?

I read this recent article (link not provided since it felt a bit like an ad) on The Verge about the trend of looking beyond 16:9 aspect ratio screen displays, at least according to what is on show at CES.

It makes me wonder what the exact relationship is between screen size and aspect ratio, and the way that apps are designed. Is the app design influencing the screen size and aspect ratio more than the hardware is dictating what the interface looks like?

If we remember back to when the particular release of the iPhone that introduced the ‘notch’ and how designers were frantically scrambling to come up with the right layout to work with this ‘enhancement’ (even if it is just ignoring it all together and moving the interface down a fraction), it would seem like for certain types of devices the relationship is one-way.

However, I tend to think that the article suggests at least for desktops the hardware is limiting the way applications are designed and laid out these days, so the laptops are starting to move away from wide screen designs that don’t seem to offer much improvement or is limiting to how application interfaces can be designed.

Does anyone else have any insights into this? Whether it is some formal research or just anecdotal evidence that there is some relationship of whether software design dictates hardware specifications or vice versa (or if it is even balanced in most contexts).