Your right! You see technically we see up side down but with the light we see right side up so what that means is yes it is upside down. Well, since the brain doesn't turn it "right side up" it could...
Because that is how the brain is organised. Once it is processed, the brain knows what way the image should be. While your eyes' lenses may create an inverted (upside down) image, the brain corrects...
You can figure out why an image in a pinhole camera is upside down if you think about how the light travels to get to the image. Light from an object higher (or the top of the object) than the camera...