" -- difficult to say, because the latter phrase is not grammatical; but anyway, I do agree that it almost means 'she is not as beautiful as her sister' (they could also be equally beautiful). As for your 'bypass roads / walls' alternatives, I think that they are equivalent in all senses; I would agree that we use 'no -er than' and 'not -er than' interchangeably. Sorry about the registration-- I'd try again, but what do I know?
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