What's rotating in there? Nothing? Because electron spin is mysterious and "intrinsic", incompatible with classical physics, and it surpasseth all human understanding. And you know this because that's what your textbook says, and that's what you've been taught. So much so, that you can't even consider that spin 1/2 might have something to do with a moebius strip, and you can't even consider pair production and annihilation to wonder if it might just conceivably be light that's rotating in there. Me, I'm skeptical.
a) Ah, the argument from incredulity. You don't find the intrinsic spin of the electron personally satisfying, so therefore it's wrong. Lacking a specific way in which it went wrong you blame it on a textbook learning and a lack of out-of-the-box thinking. Seriously, though:
everything in quantum mechanics is compatible with classical physics. The whole shebang is nonclassical. Spins, magnetic moments, CP violation, atoms, diffraction, pi-bonding, bremsstrahlung, quantum dots, superconductors. Don't insist that classical intuition is somehow "privileged" over quantum mechanics---that's an accident of history (Newton was born first) and of size (humans are very large compared to any relevant quantum size scale.)
b) We can't consider that it's a Mobius strip---unless you want to get into topological defects, which I don't think you do---because that's a mechanical model and therefore incompatible with the quantum mechanical nature of particles.
c) A photon going in a circle doesn't have generate a magnetic moment.
d) Pair production and annihilation has nothing to do with photons specifically. There's an absolutely-identical process involving two neutrinos (nu nubar -> e+ e- and e+ e- --> nu nubar) or two quarks (e+ e- --> q qbar) or almost anything you like. At low energies the cross section is very small, but at collider energies (200+ GeV) the two processes are very similar. Should we be getting all excited about how the electron is really "made of" a self-trapped neutrino? No, because there is no evidence anywhere in particle physics that this is a productive way of thinking.