I have a phone with a punch out camera. Usually I don't even think about it, but when it obscures the things what should be in that place on the screen...
I could tolerate it on a phone, although I'd rather just have a rectangular screen with a bezel for the camera. The whole phone UI can be designed to accommodate it, and it's exceedingly rare that I fullscreen anything on a phone. On a monitor, it would drive me insane; I'm regularly running things full-screen.
I have a phone with a punch out camera. Usually I don't even think about it, but when it obscures the things what should be in that place on the screen...