Like how they had the heroes fighting the villains that had the biggest impact on their lives, another thing I liked was how Thea shot an Arrow towards Sara for her to catch, which I think was a reference to Thea killing Sara before by shooting her with an arrow, but this time it was to help her. Also, perhaps the reason Thea did not try to shoot Darhk with the arrow herself was because when Oliver did that before to protect Laurel from Darhk, he caught it and killed her with it, so she decided to give it to Sara instead.
Very insightful post. I like how you identify some of the major references and symbols regarding the heroes' clashes with their most bitter enemies in the dream world during the big fight scene.
The way the fight scene (which was very well-choreographed, by the way) set up the heroes to combat a villain who most affected their lives as a way of metaphorically battling and overcoming their personal demons was very cool, and it made logical sense:
Oliver vs. Deathstroke: Oliver fights the villain who was a former ally; who had a long history with him on the island before becoming consumed by hate and vengeance; who threatened everything he held dear; who murdered his mother in front of him; and who was arguably the villain who came closest to destroying all of Starling City. It's fitting that Slade would be Oliver's foe in this dream-centered conflict.
Thea vs. Merlyn: Thea fights an infamous villain who turned out to be her biological father. Their father-daughter rivalry runs deep, and Thea has been at the center of much of the harm caused by Merlyn. It only makes sense for her to fight and kill him in the dream world battle.
Sara vs. Damien Darhk: Sara fights and kills the man who murdered her sister. 'Nuff said.
Diggle vs. the two HIVE agents: Diggle first heard that HIVE had ordered his brother killed. Then he learned that HIVE had taken his brother alive. And then he learned that his brother had turned traitor and become a full-fledged member of HIVE. So this fight makes perfect sense since HIVE as an organization has been the source of so much of Diggle's pain and agony.
Ray vs. the two Mirakuru soldiers: The Mirakuru soldiers were the ones who killed Ray's fiancee. He and his fiancee were among the many people who fell victim to the super soldiers unleashed by Slade. That tragedy arguably set Ray on the path to where he is today.
All in all, it was a nice symbolic conflict for the heroes to defeat their personal demons, and the fighting was immensely well-choreographed.