بسم الله الرحمن الرحيم
The Hadith you quoted is correct. Islam allows the boy to have a look at the proposed girl.
أو النكاح فلا بأس أن ينظر إليها مع الشهوة لما روى أن المغيرة أراد أن يتزوج امرأة فقال عليه الصلاة والسلام أنظر إليها فانه أحرى أن يودم بينكما” (مجمع الانهر)
At the time of marriage, parents should give due consideration to the consent of their children while finalizing the proposal, it is not good to marry the children against their consent forcefully as sometimes it invites problems.
Note: The Hadith here refers looking at that girl with whom the proposal is finalized. It does not refer to look at a girl with the intention of approving or disapproving her just like looking the goods in the market. For that purpose, one should send the women of his family.
Allah knows Best!
Darul Uloom Deoband