Oh, it's possible to build a lens with rectangular elements, but hardly practical.
First, there is the problem of those elements that must shift for focus and/or zoom. With circular elements, this is a relatively simple matter of helical tracking. With non-circular elements, this would become the far more complex problem of sliding elements while maintaining precision and stability. This is especially true of focus; zoom, not so much. (Ever use a spyglass?)
The mechanics of rectangular lenses would be complex beyond belief.
The biggest problems, however, would (I think) be ones of optical and thermal stability. If the radii from the optical axis are not equal for an element, then the slightest rotational or positional wobble would introduce coma like you wouldn't believe.
Similarly, variant radii would lead to differential thermal expansion problems that would make it virtually impossible to control spherical and chromatic aberrations, and would also produce coma.
The optics of rectangular lenses would also be complex beyond belief.
The digital age has nothing to do with it. Lenses are physical pieces of glass and/or crystal, and are most stable when all radii are equal. To make them acircular would increase lens complexity by at least one or two orders of magnitude with substantially no practical gain.
It ain't gonna happen.
Of course, the biggest single reason a rectangular lens is impractical is cost. If you don't think cost is a primary consideration in lens design, then you definitely do not design lenses for Canon or Nikon.
Feel free to design and build a practical rectangular camera lens and prove me wrong.
A rectangular 2:3 format lens would, however, not need a petal hood (the subject of this thread), because the rectangular shape would naturally produce a "petal" view over a fixed-length rectangular hood. I leave the basic geometry as an excersize for the reader.