>>26491811Pretty much this.
This episode is a turning point in Serena's view of Ash. She will no longer lust after him to the degree she has been doing. She will not hate him, but she will view him as a boy who will NEVER give up his ideals to be the very best, like no one ever was. Serena will understand that pursuing a romantic relationship will take Ash off-course, and she will instead go after her own dream. The two will leave on good terms.