RE: Is round cage bad for birds? Round cage or rectangular cage?
I would say that round cages are mainly an issue because of the direction the bars go. Most commonly in round cages, the bars go vertically. This is bad for birds because they need horizontal bars to comfortably move about their cage. Also, horizontal bars make it easier to hang toys, treats and other goodies.
Therefore, rectangular cages are usually better. Birds like to be up high. Rectangle cages provide more options for the bird to get as high as possible.
Birds do get scared and do seek protection. My lovebird does go in the corner when he is scared. He also hides behind his rope perch and stays very still. In a round cage I'm sure he would just find a new place to "hide".
I would stay with rectangular cages mainly because of the importance of horizontal bars.