Joe, I guess the rationale is following: lens hood should provide maximum protection from off-axis light (outside of actual frame captured) without actually obstructing the image forming on the frame (vignetting).
Since the camera frame is rectangular, it is logical that, to achieve the above, the shade should be rectangular. Circular shades provide more protection (shut out exraneous light) only in the corners, with wide areas in top and bottom (for 35mm format, but on all sides in 6x6 format) being more "exposed".
It's the test you do if you want to see whether a lens shade will vignette: put the shade on, open the back of the camera, put the shutter on "B", press shutter, and with the curtains open, look into the lens, with the back aimed at a bright background (white piece of paper will do). Slowly point the lens upwards, and you'll see the back "opening" (black frame) coming down from the top through the lens. If that black frame comes to the edge of the lens before the shade obstructs the view, the shade won't vignette. Ideal lens shade would be the one where both lines (shade and back frame) meet at the same point, at the edge of the lens. It's kind of complicated to explain, but if you do it, you'll see what I mean.
Obviously, having in mind all of the above, and if we assume that the function of a lens shade is indeed to shut out all extraneous light outside of frame, the logical conclusion is that the lens shade should be of the same format as the negative frame - i.e. for 6x6 medium format (like Rolleiflex), the shade has to be square, with all sides the same. For 35mm ("Leica") format, the shade should have the same proportions as the 35mm frame - i.e. 36 x 24 mm, i.e. 36/24 = 1.5 = meaning that the longer (top and bottom) sides should be 1.5 times longer than the shorther (left and right) sides of the "perfect" shade.
At least that's how I understand this, and I think the above explanation should clear some issues.
BTW, the circular shades are easier to manufacture (cheaper), and another very important point is that they do not vignette, regardless of how you screw them in. With rectangular shades, the shade has to be aligned properly with the negative "opening", i.e. the frame, to avoid vignetting - which usually means you need some kind of bayonet to affix the shade - making it (and the lens) more expensive/complicated to manufacture. If you ever handled a Roleliflex or another TLR camera, you have probably noticed that it's almost impossible to "mount" the shade incorrectly - once you "lock" it in position, it's aligned perfectly. If it's askew, it means it's not locked.
Hope this helps,
Denis