Just a guess, but based on the semiconductor fab work I've been involved with it rectangular or square sensors may have a lot to do with yield out of a wafer. IOW, circular wafers are sliced into multiple devices(multiple dies) and you don't waste as much of the total wafer if you cut rectangles vs circles. That and dicing a wafer with straight lines is very standard and easy, cutting circles out of each wafer isn't something that I've seen before but I suppose it could be done. As it is, full frame 24x26mm sensors already lead to lower yield and less ability to pack a wafer than smaller sensors like APS-C or smaller.
I thought he meant curved as in 3d. How would a round sensor map to a rectangular image?