Lyric discussion by sable 

Cover art for Sadder Than You lyrics by Angus and Julia Stone

Her use of the phrase "you'll turn out like him and I'll turn out like her," is interesting, as it is typically used to express a fear of becoming like one's parents. Perhaps years ago, (maybe when they were in their teens), Angus and Julia had some sibling rivalry, and as part of that they were competitive, each tryig to make their own relationships look stronger.

"He/Him" is her boyfriend "as he stood by the bed"

and "you" as in "you win" is her brother.

And then there's the fear that they'll turn out like their parents, so they patch things up and get over it?

Or maybe it describes rivalry with another relative or best friend, and "you'll tun out like him and I'll turn out like her" refers to two other people that they both knew?