The Lawrence in the movie is so different from the real Lawrence that he's pretty much a fictional character, so I wouldn't worry about #1 for a start. The homoeroticsm between Lawrence and Ali was written into the movie intentionally, so I wouldn't worry much about #2 either. As for #3 I have been reading about Lawrence for about 12 years now and as far as I'm concerned there's absolutely no *convincing* evidence whatsoever that he made it up, especially given how it ties in chronologically to the mental state he was in afterwards and when he returned to Derra. There were even medical records when he joined the army that said he was scarred. What he may have done was fictionalised the account in Seven Pillars of Wisdom as his way of dealing with it and his feelings about sexuality in general. Have you read his letter to Charlotte Shaw on the subject? I don't think you can conclude he was lying from that.