You have it about right. Gusty surface winds and preceding pilots reporting windshear. It is often better to delay landing by going around rather than attempt it with windshear in the area, which could cause a sudden loss of airspeed close to the ground. Sounds like your pilot made the right decision. BTW he requested a "block altitude" (not a hard assigned altitude) between 2000 and 2500 feet to fly a circuit back over Lake Ontario for another landing on runway 26.

And welcome to FlyerTalk.