LB 4:3 -> 16:9 - better quality?

[NoX1911]

I have a 1:2.35 pal video 720x326(1:1). Would it make sense to rescale(interpolate) the video to 16:9 (720x432 16:9) to achieve better quality (on 4:3) due to extrapolation (less noise, blocks visible?)?

Do these 16:9 frames consume more bitrate (due to smaller letterboxes) ??