The sad bottom line is, by the time he called her Mudblood (indeed, BEFORE he did so), she was itching for a reason to not be his friend any more, whether she knew it or not. Because, had she REALLY WANTED TO KEEP HIM, she would have said then "it's them or me". But it seems like her (other) friends sure did, and she was already done with him before the word ever left his mouth.
Have to disagree. If she was itching to dump him she wouldn't have tried to stop James and Sirius. Perhaps she should have given him a clearer ultimatum but I think she'd tried. In The Princes Tale you see her taking him to task over Mulciber ("What he did to Mary MacDonald was Dark Magic"). She also says "You can't wait to join him can you" referring to Voldemort. I don't know what he'd have done if she'd issued a really clear ultimatum but I guess she didn't because she knew that if she issued an ultimatum then he would issue one somewhere along the lines of "Be my girlfriend or I'll become a Death eater" I don't think his greasy hair had anything to do with her decision to end the friendship. I believe Snape was her refuge at home because Petunia hated her and she had no friends there. I believe she was reluctant to end the friendship but she knew what he was (or was becoming) and knew he wanted more from her than she could give him. He was too clingy.

Clearly, at ten, he didn't have a wand (or he'd have been using it). Clearly, at ten, (or even maybe eleven if they'd already gotten their letters, and it seemed like they had), he didn't have sufficient control over his magic to control that branch from hitting Petunia on the head (otherwise, he would have looked smug, and not scared).
But Snape did have his mums old books and I can't imagine he hadn't looked through them. I don't think we can discard Sirius' words here. I know he hates Snapeand will do anything to present him in a bad light but we can't disregard all his words just to fit a theory.

I am completely failing to see your point here. They started it, he retaliated, it happens, so it's okay?

My point isn't so much to you. Everyone gets very hot under the collar about James/Sirius/Snape and who hexed who. Blah blah all hexes bad etc. My point was that ALL the students at Hogwarts hex each other. We see the Weasley Twins do it again and again. I was however trying to say that I don't think Snape was quite the innocent little victim that people (not neccessarily you) have thought since SWM. Remus says that Snape hexed James as much as possible too and Remus has made his peace with Snape. Remus' error is that he thinks it's all just schoolboy pranks and really doesn't appreciate how much Snape suffered. Of course he'll always be more loyal to Sirius and James but he doesn't bear Snape any ill-will- he says that VERY clearly in HBP. Plus remus trusts Dumbledore's judgement. I also think Snape no longerbears Remus any malice. It is very clear that he saves his life, when his sectumsempra spell hits George he was aiming it at the Death Eater who was trying to kill Remus.

I absolutely despise Ronald Weasley and I think that Ron is just about everything Snape hates: lazy, whiny, a goof-off, disrespectful and unmotivated. So unsurprisingly I'm not seeing eye to eye with you on Snape's reaction toward him
If he hates lazy goof offs then why is he okay with Crabbe and Goyle and indeed Malfoy? Draco's marks at the end of year one were not good- Lucius says so in Bougin and Burkes. Crabbe/ Goyle- okay perhaps they're just so thick that he sees no potential in them but under Amycus they certainly began to excel at something. Yet Snape didn't attack them for being lazy. Also he is awful to Hermione. I know she's an 'insufferable know-it-all' but for crying out loud- surely Snape of all people should be rejoicing in her intelligence. You can't tell me that none of the other students ever 'goofed off'. Was Pansy a model student?

Right I'd love to discuss this all day. You've certainly opened my eyes to parts of Snape's character that I hadn't considered and that has to be a good thing. Mind you I'm still a Marauder fan