I don't have any specific knowledge here, but I just started reading about it.
As has been pointed out, the rounded corners are still addressable/displayable, this can be easily demonstrated by moving a cursor to the black rounded corner region, and the cursor is drawn in that region just fine. It
looks like rounded corners is an attribute of the Quickdraw GDevice structure, although trying to do a simple SetDeviceAttributes() on the main screen's GDHandle didn't seem to do anything. Maybe I'm not forcing a redraw correctly? Setting the attribute did persist across app launches, but would reset if Finder was restarted or if the powerbook went to sleep. So the rounded corners could be an attribute of the quickdraw device driver, but I'm not very familiar with QD drivers so I'm not really sure. Before anything boots on a powerbook (I'm testing with the 540c), the internal LCD screen still has squared corners while an external screen (not mirrored) has rounded corners. This also leads me to believe it's an attribute of the QD device driver. Perhaps this attribute tells QD whether to draw the World Rgn as a rounded rect vs. squared rect.
Some reading an old
mactech articles seems to indicate by directly mucking with the menu region and gray region structures, you can change how the corners are drawn. This seems like a bit of a brute force method, and I haven't tried it so I'm not entirely sure it'll work like I expect.