Yup.
W/o going too much off topic here, it could be fantasized that both these young men used this filming experience (and I'm talking about the entire film here) as a way to live out and explore some hidden fantasizes of their own that they otherwise either didn't feel comfortable or confident with or even understand (they were still young). I suspect that this may happen often with actors and actresses who really "get into" a role that portrays behavior that otherwise would be beyond their own limits in terms of their own self perception. Both of these men were (or are ) very secure in themselves, but this is still (even in 2016 let alone 2004) a large river to cross in many ways. The way Jake and Heath bonded during this filming experience is well documented and I guess one would need to review the filming sequence to see when this scene (SNIT) was shot and how it falls in the bigger scheme of things to really know, but the emotional attraction is surely there. One cannot but help to wonder if the idea of an actual sexual encounter did not occur to either or both of them. The glory of this is that that the real emotional content of this was captured by Ang and he saw it and felt it was important to show us this on the screen. As has been said many times here before by us "oldtimers" this is truly a movie on which "the stars fell", there is no other explanation. How lucky we are to have lived in these times!
Director Lee, in an interview in 2021, said that Heath and Jake had a character conflict and sometimes he mediated it himself, Heath was very compassionate towards Michelle and critical towards Jake, which was in his mind because Heath was very compassionate towards Michelle and critical towards Jake, which was already confirmed that after the Brokeback promotions were over, we didn't see much together, if anything, there was michelle, brokeback wasn't much of a paradise. Even in Lee's mind, he was in his mind because Heath was extremely fond of michelle. .