Is what is happening to me due to my hesitant nature, or is the dream of the other suitor being better a truthful dream that necessitates leaving the current suitor who lied in the past, knowing that he now hides nothing from me?

The religious standard for choosing a husband is his religious commitment and character. If the aforementioned young man is religious, he should not be rejected merely for lying about some matters, especially if he has repented, for all human beings err, and the best of those who err are those who repent. It is advisable to consult people of sound judgment and virtue, and to perform the Istikhara prayer (prayer for guidance). Do what your heart feels at ease with after the Istikhara and rely on Allah, and do not pay attention to whispers (of doubt). A dream does not entail a religious ruling, nor does the validity of Istikhara depend on seeing a dream afterwards.