It is? I had trouble following some of the dialogue and many of the subtitles were incomplete and not sync'ed well.
The Stranger seems to think he is Sauron, even though the sorceresses thought they'd made a mistake. He might be an Istar, I suppose, but he could be an element of Sauron given that he's being drawn to Rhûn. In the lore, Sauron does spend time there but that's in the Third Age after he's been defeated by Isildur. He appears to have powers that Halbrand doesn't, even though the original Mairon was a Maia.
If the Stranger is a blue wizard, where's the other one? The performance does remind me a lot of Christopher Lee as Saruman though. Getting twirled around by the Dweller and her staff is supposed to remind us of what movie Saruman did to Gandalf, but what if that's misdirection?
That the constellation (the "hermit's hat", if I heard it correctly) is only visible from Rhûn is a mystery to me. At this point in the Second Age, Arda should still be a disc. All the stars in one celestial hemisphere should be equally visible in the night sky from anywhere on the disc. Even if Arda were a sphere, it still would be a mystery. Rhûn is in the east, not the south.
Galadriel gave Finrod's dagger up without too much of struggle. It might have been cursed, but perhaps her rejection of Halbrand broke the link. Being forced to confront her nature though Sauron's invasion of her memories might well temper her into being more like movie Galadriel.