Well, it's an accurate representation of your hair in its wet state. To other people, your hair looks roughly like it does for you in the mirror or like when you see your reflection on the windows when outdoors (in normal, dry circumstances). The latter is probably more accurate (ie. reflection on the windows when out in natural lighting), as you always see your mirror-image in the same way and others of different height etc. won't see the same exact picture, not to mention lighting inconsistencies.
But yeah man, everyone's hair looks thinner when wet, it's just that us balding people notice things like that very easily - especially when it comes to our own hair. It's easy to panic when you see yourself at your worst (bad lighting, wet hair) and then compare your hair to you at your best (dry hair). Take a look at non-balding people with wet hair; it also looks sh1tty in proportion to their usual thickness.
My hair looks good when dry and there're no apparent bald spots with wet hair either, but it does look thin then. Full coverage, but thin.
