1280x1024 is 5:4.
Yup, that was his point; there used to be non-4x3 pixels (back in the CRT days). I wonder if anyone ever made a native LCD in that resolution.
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I have no idea what their criteria is for "related". Also, there used to be a "post" button at the bottom of the page; now I have to scroll all the way back up to the top to post.
There is no good reason to pay a good negotiator more than a bad, except if you want to hire someone for a position where you need negotiation skills.
There is, if you want that particular person to work at your company. Since they are so good at negotiation, they can probably convince some other company, such as one of your competitors, to pay them what they want, if you don't want to.