Usually the effect of a pinhole (or camera obscura) and the lens of our eyes are creating the world upside down on our retina.
Now imagine the lens and cornea would be flat is the pinhole effect still capable of creating a reversed image or would our vision be total blurred because (parts of) objects shining straight in the middle into our eye would not be reversed while parts above or beneath the middle would be reversed?
PS: This question is posted too at the biology.SE (not knowing where it fits best).