It does look inflamed. Perhaps you are having a reaction to minoxidil? It seems, at least to me, that minoxidil is like marmite, it can work wonders for some, and others it seems to cause nothing but trouble.
Mind you, I have a friend with a very beautiful NW1 of curly brown hair (that shines blonde in the sun) and he has a very red scalp. He's had a red scalp for years and uses medicated shampoo for it (might even be nizoral) - he's still a NW1.
I find myself now analysing everyone I knows hair in close detail. I have hair envy. male pattern baldness warps the mind.
I fear in your case that the shaved look may be the only remaining option.
finasteride might have stopped your loss (but then again, it may not have, since you have aggressive male pattern baldness for someone so young) - but it may be a little too late. It might just maintain what you have at the moment (a diffuse NW2.5 - NW3)
finasteride may even improve your hair, but if you fear side effects, I wouldn't bother with the drug.
Everyone who's come onto this board posting fears about side effects - when we've convinced them to try finasteride, they always quit the drug saying they've got sides (real or imagined) anyway. Some people just don't like messing with hormones, which is understandable. (Me, I couldn't give a toss, since all they've done is cause me pain via male pattern baldness anyway)
FWIW I maintain my hair excellently on finasteride - but I jumped on it too late so all I maintain is a NW4. It isn't really worth it but I am "holding out" in some way (the ability to still use Toppik).