Your monitor isn't capable of displaying 1280x200 and tries to make the best of it. It gets squished horizontally because the horizontal resolution is doubled and thus the size (not the resolution, just the physical size on screen) of icons and stuff is reduced by 50%.
In reality, 1280x200/256 is hardly ever used.
Quarter-pixel scrolling games benefit from this ability.
16 colours is faster than 256 because it requires less DMA channels so it doesn't block cpu (just like 31Khz screenmodes).
IIRC my cbm 1084sd2 accepted 73Hz screenmodes and also showed 1280x256 correctly (without skipping any column) but it's been a long time (and I also had an eyefish vision like cbm 1942). I remember clearly that my Arxxon scandoubler and my Picasso4 skipped columns in SHires mode so I guess my 2 old monitors didn't (although the text was too small for a 14" monitor so I prefered to use other screenmodes)
CompServ FlickerFixerII and IndivisionAGA 1200/4000/ECS show SuperHiRes correctly.