T levels increases through puberty and peaks at about 24-25. Then it gradually declines. This is a natural, healthy, declining process.
Now, unfortunately, in some old men increased aromatase activity messes up the system a bit. Aromatase is the enzyme that converts T into estradiol (wich is an estrogen). So the ratio between T and E gets skewed, and we get what is commonly known as andropause. In some cases this is treated with injection of T, in other cases it passes naturally.
DHT is made from T, as you all know, by the alpha reductase family of enzymes.
Depending on your genetic make up, the alpha reductase activity can be high, low or whatever. Obviously, T decreases as DHT increases (since DHT is made from T). A high alpha reductase activity, combined with a high aromatase activity would result in a plummet of T values, but relatively high DHT and estrogen levels.
When it comes to hairloss; DHT levels doesn´t really need to be that high. Sure, there are a correlation between alpha reductase activity, DHT levels and hairloss, but that doesn´t mean high DHT ALONE causes hair loss. How sensitive the follicles are, and the amount of androgen receptors on the scalp, also play a crucial role.
I´ve seen bloodwork of people with sky high DHT and relatively good hair. A signalling molecule needs a receptor in order to work. DHT doesn´t wreck your hair if your hair doesn´t respond to DHT.
We are taught that DHT really only is a more potent version of T, that is, higher affinity for the androgen receptor. That may be true for some tissues, but not all.
For the majority of men, libido DOES NOT increase when DHT levels go down (by taking, let´s say dutasteride), but it does decrease when T levels go down. Also, libido increases greatly with a surge in T, but remains unaffected by increases in DHT. This suggests that T plays a bigger role than DHT in male libido.