I felt sorry for Theon since the day he captured Winterfell, a man that would never be a Stark, nor ever a Greyjoy. The Theon & Asha flirt turned me on until she revealed herself as his sister, then I felt a little sick and a little bit more sorry for him lol, though Asha is still my favorite female character.
ADWD, has redeemed him already in my opinion, he allowed Ramsay to flay two innocent children and their mother, as a substitute for the Stark brothers; a dungeon cell for life, or the death penalty would have been the right punishment, but what he went through is sickening. I don't think his capture of Winterfell was a crime, as he was only trying to build a kingdom of his own, and not be anyone's ward, or subject. Robb did the samething and many people also died in his quest.
I just wish Theon never captured the Castle, because that forced Robb to please Lord Walder and head to the Twins, otherwise he would have marched South. I would have loved to have seen Tywin and Robb go at it on the battlefield, the former was feared and a real strategist(notice how everybody suddenly has the heart to return to Westeros to fight Tommen's reign now he's dead? from Selmy to Connington) and the latter a natural commander(If Edmure hadn't mocked up his plans my dream would have been a reality).
I can't deny it though there were many moments in ADWD where I laughed out loud at Theon's behaviour, be it the Reek rhymes, or for example when he and the Abel girls went to get Arya/Jeyne, for a split second Theon pictured Ramsay coming up the stairs and discovering him, causing Theon to want to scream like a little girl lol.
Theon's suffering and broken spirit reminds me of Gollum/Smeagol alot.