I think some cameras have configurable scaling methods, but for others the developers were lazy and don't provide an option, or maybe the chipset they used can't handle some kinds of scaling. Some of my old junky Chinese cams did this forced cropping thing, but I haven't known HIkvision to do it too
If you can find a lens that fits and is sufficiently high quality for a multi-megapixel camera with IR, that could be an option. It looks like that camera uses a standard M12 lens but that is no guarantee of a good fit, and there are certainly some M12 lenses that wouldn't fit under the dome or wouldn't be able to focus properly without physically contacting the sensor housing.
2560x1920 is 4:3 format, and 1920x1080 is 16:9 format (wide screen).
So 1920x1080 will just crop part of the top/bottom from the sensor to show you a wide screen image.
Yes, they could just provide a way/setting to adjust this, so it would still use all the sensor and then the 1920x1080 would just look stretched. But they don't