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I could be wrong, but I believe the resolution is a bit better when you shoot 4:3 and then LB in post.
Then you shoot squeeze and not in 4:3 if you want to letterbox in post right?
If you just LB in post vs. actually resizing it to 16X9 so it plays without columns or letterbox on a 16X9 screen then you are probably, inarguably correct, because you have done nothing to the center portion of the image. You haven't stretched it or blown it up or pushed it or pulled it. You just put a mask over the top and bottom. So this might be a bit better than squeeze which electronically blows the image up and changes the pixel shape, but it will also be better than blowing up to 16X9 in post, which also electronically futzes with the image in the same way.