You can certainly use the mouse to control this instead of buying a touch screen, and i have used the scaling feature in touchbuddy, and it seems to scale everything just fine. It has the option to maintain the original aspect ratio, so the only tough part really is then re-aligning the ABRIS overlay to fit the gap in the Touchbuddy skin correctly. The downside to using a higher resolution than 1024X768 is that it may dramatically lower your game's frame rate, which is why DickDastardly uses 1024X768 for both his side monitors.
Yes the Bezel is just your monitor's front edge which may be a decorative or function piece as CyBerkut said. it usually has holes for the power, contract, menu, ect. buttons and may be physically holding part of the LCD panel in place inside the monitor. When considering buying a touch screen kit to retro fit your LCD monitor some company's / ebay auction's make mention that after installation there may be a slight fitment issues since the touch screen has to fit between the monitor's Bezel and the actual LCD screen. On my Dell 19" ultra sharp monitor there seems to be very little room for any additional thickness so i was just asking around if anyone had experience do the mod to see how obtrusive the new touch screen might be.