That is: you can fly in a dream; you can't fly in real life. But if you could fly in real life, you probably would. Therefore, it isn't shocking to "watch yourself" decide to fly, if flying is obviously an option.
Consider, by contrast, ripping your own limbs off. Perfectly possible in reality, but nobody does it. If you did it in a dream, you'd wonder why "you" wanted to do that. It wouldn't make sense for you to make that decision, so probably "you" aren't you at the moment.
You might try some stuff, e.g. stepping off a cliff in order to fly, only if you're really quite sure you're in a dream. But "being sure you're in a dream" means "being sure your actions have no long-term consequences in reality", which allows many more things to be ego-syntonic.
Rarely - you can recapture that very different way of being while awake and have skills you never had before.
In dreams, neither of these are true: "you" don't behave the way you'd expect of your waking self, and the things "you" do don't result in what you'd expect out of the real world.