No, you're not wrong. There is no "wrong" in what you didn't do.
But to have my perspective you have to read a short story that I've written before.
It was an important, local tournament with lots of good players in it. I was lucky enough to be in the finals against a very good player, again, both of us local and have known each other for years. You could say that we respected each other. Both of us owned our own business, had families, had decent pool games, bet our own money, etc....
I'm running out Shane Van Boening :wink: and another person on the adjacent table is THROWING the cue ball repeatedly against the side rail OVER AND OVER, making the cue ball bounce so that he could catch it in the air. I stopped my EASY run out because of the distraction and waited for the guy to stop bouncing the cue ball off of the side rail. When he finally looked at me, he realized that it was distracting me. It was like a spotlight had just been shown on him and he stopped with a look of bewilderment and wanted to say something like "Dude, I'm sorry, I didn't know that was bothering you". The few remaining balls had been well spread and it was the easiest of runouts with all of the balls near the pockets, no paths blocked. I carefully and SLOWLY got into position to shoot the 7 ball and went through my preshot routine as I normally do and stroked the cue ball like Buddy Hall. The 7 ball fell into the pocket and I got perfect shape on the 8 ball. The nine was sitting a few inches from another pocket. My opponent then said, with a look of resignation on his face, "You shot the wrong ball". He knew that I was shooting the wrong ball. He knew that the other person was doing a major distraction, yet he said nothing to the distractor or to me when I should have been shooting the 6 ball. And yes, he had plenty of time to tell me and NO, the seven ball wasn't difficult to get shape from the six ball. He just didn't want to tell me that I was shooting the wrong ball. After he ran out the remaining 3 balls, we shook hands and he "apologized" by saying, "I'm really sorry, man". I wasn't happy with that remark and I responded by telling him, "I got exactly what I should have expected". He then wants to act like he's mad at me for telling him that, saying that he didn't like me thinking he was some kind of piece of s**t.

I just repeated what I had already said and that didn't please him and just dug in a little deeper. What he didn't know is that I was thinking that I simply shouldn't expect anyone to correct my error but I was very happy thinking that he thought I was thinking worse of him. It caused a rift between our quasi-peer-friendship that still exists to this day.
For those who think it is OK to sit back and not say anything, just beware that there is a price to pay for speaking up, just as there is for remaining silent.
Just be prepared to accept the consequences for which ever one you choose. I do believe that it is far easier to accept a loss than it is for others to think badly of your character.
That being said, I can't say that I will always speak up. There may be circumstances that might encourage me to say nothing. It is up to each person to work out their own salvation.