Well yeah physically its sort of right, but for one (though im not sure if this is just a difference of opinion or if its not clear from the picture) imo the streched hole does seem abnormally large. But also if i use any decal more complicated than just this black circle it would seem off. Since the bullet hole texture would be modeled off a "clean" 90 degree impact bullet hole it would look off if streched like that.
Here a simple example that makes it a bit more clear where i put a white x inside the bullet hole.

Decals that make sense for (near) 90 degree impacts would look bad (or at least very different) when stretched like this.