I might just be reading too much into it but I really do believe a lot of Cole's development is sort of an analogy for coming to terms with being gay.
He put on a facade for his dad for years.
Faking letters and hiding the fact that he was in a school he despised.
It all led up to him revealing the fact that he was a ninja, essentially "coming out" to his dad, telling him that he's proud to be who he is.
Initially his dad isn't happy, more so with the dishonesty rather than who is son is. But when he sees his son fight and dance, he realizes that Cole never intended to be dishonest with him and he accepts his son for who he is.
Doesn't stop there, tho. Becoming a ghost and becoming human again I think had a lot with his self-acceptance. We all know of the stigma from the 80's and 90's about gay men. Receiving his ghost affliction was a bit like being struck with a "disease" commonly associated with gay men.
And Cole learning to live with it and subsequently conquering it without being rid of it completely (becoming human again with his scar and ghost hands) is synonymous with the personal struggle and acceptance of those living with the virus in peace.
It just kinda hit me suddenly today and I had to get it out. Cole is a super important character to me and I'm starved for content or analysis of his character.