Not my active area of research but I would agree with you. That diagram ain’t correct.
This human investigative model employing sex steroid ablation and selective physiological sex steroid add-back in healthy and GnRH-deficient men provides novel insights into the study of LH regulation in men. These data suggest a model of sex steroid feedback whereby 1) T and E2 have independent effects on LH secretion, 2) inhibition of LH by T requires aromatization for its pituitary but not its hypothalamic effects, and 3) E2 has dual sites of feedback, but its predominant effect is at the hypothalamus.
Typical med school diagrams circa 2019:
