It is about him being gay. But it read more like a "you don't need Mike to validate you because you're powerful on your own" to empower him (specifically about his identity, but also in general). I interpreted the film flashback thing as him recounting moments with his family and friends and remembering that they'll love him no matter what, and this also serves as the moment he finally takes some agency to protect them.

^Okay thank you for putting it in better words than the show did (for me at least). I was a bit confused about where they were going with that.

Honestly I'm glad the show is having him move on from his crush on Mike because Will would just end up more unhappy because it would never happen. As much as I don't want to interrupt anybody's ship of them: 1) Mike gives off straight guy SO MUCH, and 2) Mike is really into Eleven to the point of obsession in my eyes (but that may just be me).

Also I gotta say I love how Robin and Will are like a little chaos duo of sorts this season around.

exactly as the pineapple said