Question. Didn't the last time Matt was shown he was holding hands with some other girl? So are he and Will still actually together?

Do you mean the very last issue with that black haired lady? Technically they're not holding hands but she's massively flirting with him and he doesn't do anything against it.
It's said that she's a friend of his and Will is very jealous, enough to throw a cake down from Kandrakar just to hit her and make her stay away. She then justifies her actions by saying that she's a Sovereign but also in love. So... I guess this could be interpreted as:
a) they're still together and she just doesn't like another woman getting near Matt OR
b) they're not together but Will still loves him or maybe used to love him and is surprisingly cool about not being together anymore. Apart from throwing cake.

I guess you can interpret it either way but I figured if they had them split up, they would've mentioned it officially like in issue 128-129 OR had him move away from Heatherfield like the other poor boyfriends that were cut out of the story...

But I feel you. It's kind of up in the air after their break-up and getting back together again.

Ah, your right. I misremembered. Although he does seem a little flirty back, not as much as her though, but still.

It doesn't seem as clear as one would like though, right? I never go the uncertainty of Cornelia and Peter. They are simply together. Here it seems a bit uncertain, very up in the air.

He really is, it's so confusing! Make up your mind, man!
But oh well, I at least have the freedom to go with whatever solution I like best for my comic :D