It's true, with that fishbowl canopy the pilot could actually see better than he could from a D model.
From the horses mouth...
"After the Mustang III aircraft had been delivered to England, the RAF decided that the hinged cockpit canopy offered too poor a view for European operations. A fairly major modification was made in which the original framed hinged hood was replaced by a bulged Perspex frameless canopy that slid to the rear on rails. This canopy gave the pilot much more room and the huge goldfish bowl afforded a good view almost straight down or directly to the rear. This hood was manufactured and fitted by the British corporation R. Malcolm & Co., and came to be known as the "Malcolm Hood". This hood was fitted to most RAF Mustang IIIs, and many USAAF Eighth and Ninth Air Force P-51B/C fighters received this modification as well."
Further...
"... many pilots regarded the Malcolm-hooded P-51B/C as the best Mustang of the entire series. It was lighter, faster, and had crisper handling than the later bubble-hooded P-51D and actually had a better all-round view. Its primary weakness, however, was in its armament--only four rather than six guns, which often proved prone to jamming. Some of the modifications applied to the P-51D to improve the ammunition feed were later retrofitted into P-51B/Cs, which made their guns less prone to jamming. With modified guns and a Malcolm hood, the P-51B/C was arguably a better fighter than the P-51D, with better visibility, lower weight, and without the structural problems which afflicted the D. Its departure characteristics were also more benign."
The above from Baughers outstanding treatsie on the B/C model Stangs. Link below. Excellent reading, BTW.
http://home.att.net/~jbaugher1/p51_8.html Hang