The point you're missing is that we are creating a logical proof. Because of the statement I make, the fact becomes common knowledge to all the dragons. This allows us to establish the inductive base case (1 GE dragon would leave on day 1). From that case, we can establish that 2 GE dragons leave on the 2nd day, or that 3 GE dragons leave on the 3rd day ... or that 99 GE dragons leave on the 99th day, or that 100 GE dragons leave on the 100th day.
The point isn't what the dragons can see, it's what they can logically conclude, given that they are all perfectly logical and all know each other to be perfectly logical. Any given dragon, upon seeing 99 other pairs of green eyes, knows from inductive proof that if they are all still standing there on the 100th day, then it must be the case that there are 100 green eyed dragons, because if there were fewer than 100, those dragons
would already have left.
They are not sitting there on day 63 thinking "well, it's never going to happen that someone sees 62 green-eyed dragons, because I can see 99, so let's forget the whole thing and go eat some dwarves and steal their gold."
Well actually, they might. Perhaps that's why Smaug was so angry.
I offer Randall Monroe's write up of the solution:
https://xkcd.com/solution.html
Or a paper on common knowledge from Yale University:
http://cowles.econ.yale.edu/~gean/art/p0882.pdf
(Section 2 "Puzzles about reasoning based on the reasoning of others", starting on page 3.)