It's not fucked up at all in that context, OP. Looking at one's hands is one of the more reliable reality checks.
When I look at mine in the Dreaming, I see extra fingers, missing fingers, crab claws, shit like that. There's always a difference.
But, really when you think about it, it IS fucked up. Why our hands? I mean, sure, everything in the dream world is distorted and constantly changing, but why do our hands look different every time we look at them?