Right. Refraction only occurs on the surface of the water, like the waves; the views through the sides are what you'd see from under the water at that point, not looking through a viewing window.
Well, if you want to get really technical, what you'd see from underwater would be much worse than what a camera sees, since your eyes require air to properly focus.
So if they wanted to make it what you would see underwater, they should just blur the crap out of it.
