I think that one of the first things to remember about Murphy's Hollywood is that it is a rather fantastical portrayal. Like real life, Willson is a somewhat layered person. Besides actually attempting to help Rock Hudson, among many actors, Willson also took advantage of him, occasionally sexually. Willson was a closeted gay person so he knew that his clients had a lot to lose and so he knew exactly how to manipulate them. At the same time as the movie shows people sacrifice a lot (morals, love, relationships) for fame. Because it seems from the movie that his clients tend to be young they obviously don't know what they will have to sacrifice but they do it all the same in the end.
However, the movie is a fantastical portrayal for many of the characters that it has onboard. They are in some ways true but in other ways things just did not happen in that way. The most obvious is Hudson. He remained closeted through out most of his career. In all likelihood he even married Willson's secretary to maintain the facade (lasted only 3 years). There was no man-to-man handholding at the Oscars.