I knew about the bald Lex Luthor (which makes the insistence on his baldness as a contributory factor to his villainy even sillier)
I've said this before, but, in the original story, Luthor was changed in seconds from one person into another, and I suspect even he didn't realise what had happened to him. I've always thought those freaky chemicals (gases) dousing his skull did a lot more than make his hair fall out; that is, they affected his brain.
And you may have to accept this event as causing his villainy because Luthor's origin story was written by Jerry.
As to the "urban legend" of someone drawing the wrong figure leading to a bald Luthor, I'm not entirely convinced. No one will ever know for sure. E.N.B. said Joe loved depicting bald villains, and there's also the fact Luthor was the successor to the bald mastermind Ultra-Humanite.