Can you zoom out as far as you need to? If so, you don't need it.
That's not really true.
Zooming out has some terrible consequences on the surrounding scenery rendering: the perspectives are altered.
Here's an example: let's say you're flying a warbird.
On a widescreen monitor, with the default zoom and default forward view in the VC, there's not much we can see from the dashboard.
One needs, as said above, to zoom out to get at least a part of the dashoboard visible on the screen. Else he would see only the reticle and the upper part of the panel, right ?
Unfortunately, when you zoom out, you also induce a "fish-eye" effect produced by the increasing wide angle of view. The consequence of this is the same than a wide angle lens on a camera: things that are near appear to be much more distant that what they really are. The whole perception of distance is destroyed. All proportions are wrong: big mountains just a few miles away appear like small hills. Also, when flying a close formation, the other plane seems to be at a reasonable distance... despite the fact that its wing is already going through the canopy glass
The default zoom 0.70 offers a slightly better (but far from perfect) balance between angle of view and proportions.
When setting the WideViewAspect to True, with that same default zoom, you will get a better view and a greater visibility of your panel.
The main difference between True and False for that parameter is the way the simulator picture is stretched on the screen.
Let's say you are in windowed mode (not full screen). Try to resize your picture: reduce the height and increase the width. See what happens with True or False. You'll understand what's going on
WideViewAspect=True will allow wide screen monitor users to get a greater panel visibility without having to decrease the zoom, which means they keep better proportions and better perception of distance in the sim.