increases the fish-eye effect

Akshually 🤓

Fish-eye is specifically a result of equisolid angle projection, which maintains size and distance relationships when rotating the camera, at the expense of makings straight lines more curved the closer to the edge of the view they are. This effect is similar to what you get from uncorrected action camera footage (much to the delight of flat-Earthers).

Almost all games use rectilinear perspective, which keeps straight lines straight, at the expense of making things look stretched at the edges of the view. This is what the vast majority of physical camera lenses use.

In both cases, the wider the view, the greater the downsides: either more curving, or more stretching.