Steve Harrington and the Hero's Journey
Steve is a character who struggles with authenticity. He wants validation (acceptance, admiration, love), and he projects an image that he thinks will get it. We see this idea repeated multiple times throughout the series: "let's...just pretend like we're stupid teenagers", "the key with girls is just acting like you don't care", and lying to girls about why he's working at Scoops Ahoy. He does this because at some point, for some reason (let's be honest, probably his dad), he became convinced that his authentic self isn't good enough. And Steve has become so used to playing this part that he's lost touch with who he really is.
Unfortunately, this image he projects isn't a particularly good person. He's a bit of a bully and a bit of a coward, more concerned with looking after himself than doing the right thing. Still, we see glimpses of Steve's authentic self - he's gentle with Nancy, and he's willing to call out his friends when they cross a line. Basically, there's a good person in there, buried under a heap of bullshit.
What's cool about Steve's character arc, and probably the reason it resonates with so many people, is that it follows the structural beats of the hero's journey almost perfectly. The hero's journey is a narrative template used by some of the West's most well-known stories; examples include The Hobbit, The Wizard of Oz, and Star Wars. Below is an infographic that shows the 12 structural beats to the hero's journey, as identified by Christopher Vogler (source).
So let's look at how these beats apply to Steve's arc:
Ordinary World: Steve and Nancy are in the beginnings of a new relationship. He has a reputation as a "douchebag", and Nancy seems hesitant to believe his feelings are genuine, but it's obvious he cares for her. Will Byers is missing, but this doesn't affect Steve much.
Call to Adventure: Barb disappears, and Nancy is worried. She expresses this to Steve.
Refusal of the Call: Steve brushes off Nancy's concerns. He's more worried about getting in trouble with his dad. He would rather distract Nancy with a movie and pretend everything is fine. This refusal is punished by the narrative, as it creates a rift between Steve and Nancy.
Meeting with the Mentor: In Steve's case, the mentor isn't a person. It's pain. It's a thump on the head. It's getting beaten up by Jonathan Byers and realising he's screwed up his relationship with Nancy. Steve realises he cares about Nancy more than his asshole friends and resolves to make things right.
Crossing the Threshold: Steve goes to the Byers' house to apologise. Nancy and Jonathan act as "Threshold Guardians", insisting he leave and testing his resolve. Steve decides that he's not going to leave Nancy to fight the Demogorgon without him, so he goes back inside. In doing so, he crosses the threshold into the Special World.
Tests, Allies, and Enemies: Steve fails his first test in the Special World when he falls back into complacency and tells Nancy to "pretend" rather than seek justice for Barb. As a punishment for this failure, Steve and Nancy breakup, and Nancy begins dating Jonathan instead. Soon after though, Steve finds an ally in Dustin, who helps him get back on track. He fights Demodogs and Billy. Though he's tempted to stay on the sidelines ("we're on the bench"), his desire to keep his promise to Nancy, to be someone she can depend on, forces him to action. He works with the Party to distract the Mind Flayer, putting himself on the line to keep them safe.
Approach the Inmost Cave: Steve, Dustin, and Robin attempt to translate and decipher a secret Russian transmission. This time, rather than being hesitant, Steve is excited by the prospect of being a hero. His behaviour is still inauthentic though, which Dustin and Robin both call him out on. Their investigation leads them to the Russians' secret underground base, and Steve and Dustin begin to suspect it might be tied to the Upside Down.
Ordeal: Steve has his low moment after being captured and tortured by the Russians. As he's lying on the floor of the Russian base, thinking he might die, listening to Robin talk about what an asshole he used to be, he has a revelation: "It just baffles me. Everything that people tell you is important, everything that people say you should care about, it's all just…bullshit. But I guess you've got to mess up to figure things out, right?" This is the turning point in Steve's journey, a symbolic death and rebirth. Steve reflects on what kind of person he's been, what he's prioritised, and what it's cost him (his use of the word "bullshit" is loaded, an evocation of his breakup with Nancy). And he decides he's not going to be that person anymore. From this point on, we see a more authentic Steve who embraces his caring and heroic nature. He demonstrates this growth during Robin's coming out scene and when he rushes back to Starcourt Mall, risking his life to save Nancy from Billy's car.
Reward: After they manage to close the gate and defeat the Meat Flayer, things are looking up for Steve. He's found a best friend in Robin, he gets a new job, and he's hopeful he can find love again.
Road Back: They aren't done with the Upside Down yet, as Vecna is now able to open his own gates. While investigating this, Steve is reunited with Nancy. Unlike when they were dating, Steve is courageous and insists on putting himself on the line. He even argues when Nancy tries to sideline him, saying he can do more. Nancy responds positively to this new version of Steve, and the two share a lot of emotionally charged moments. At first, Steve claims to have moved on from Nancy, until Eddie gives him hope that Nancy loves him and encourages him to get her back. At this point, Steve realises he could miss out on his chance to be with Nancy again if he keeps denying his feelings, so he confesses to her. Everyone works together to try to kill Vecna, but the attempt ultimately fails, and the Upside Down invades Hawkins.
The Resurrection and Return with the Elixir are the story's climax and resolution, so they haven't happened yet.
One thing I would like to point out, for those who have been complaining about Steve's characterisation in season 4, is the hero's journey is circular. The journey ends when the hero returns home, having gained wisdom and grown as a person. This isn't character regression. Bilbo Baggins doesn't regress when he goes back to the Shire. Dorothy doesn't regress when she goes back to Kansas. And Steve isn't regressing either. It's just that, for Steve, home is Nancy.
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