Aurora/Sleeping Beauty mentioned earlier in the episode that she was having nightmares. She explains to Snow that she’s in a red room with no doors or windows, and the curtains in the room are on fire. She’s in one corner of the room and she can see someone else in the other corner.
In the end of the episode, Henry is startled by his nightmare and explains to David almost identically how Aurora explained her dream. Therefore, it sounds like Henry is describing that Aurora is the other person in the other corner of this room.
When Snow talks about “home” I can understand how it’s confusing since they are FROM there (the Enchanted Forest). I don’t know how old Snow White is before the curse took everyone to Our World, but they have been living in Storybrooke for a consecutive 28 years. Granted they didn’t remember their past lives, but they are conflicted with having their memories from the curse and their real memories. So to Mary Margaret, she has been living in Storybrooke her whole life. Whether it’s 28 years or her whole life, it’s still a LONG time, so calling Storybrooke “home” makes sense to me! Also, just like you said, she can be referring to being back with her family as “home.”