The question of whether or not to go one step further and make He-Man explicitly gay never came up at Mattel, Morse says, because the concept never made it far enough along.
At this point, Skeletor draws his own version of the mystic sword for the final stage of the duel, an obvious homage to the classic minicomics depicting Skeletor with one half of the Power Sword.
In the cartoon, He-Man engaged in actual swordfights very rarely, but the film producers knew that the character was closely associated with the sword, which meant that it should feature prominently in the movie's finale.