1st bolded, I blame that on Stark fanaticism. I read the books before the downfall of Theon...like you, at the end, I felt bad...and this theme is true throughout the series. In Theon, he was cocky, traitor, etc. those decisions led hid to Ramsey...but he has not been killed...and it seems that GRRM is turning him into a hero or the underdog...same with Jamie, I think. Anyways, the character development of the book Theon reflects tv Theon.
2nd bolded again Stark fanaticism, I don't blame the showrunners because they have done an excellent job with Theon's story. The show watchers don't know the updated story on Reek yet, so maybe when they find out they will turnaround but I have doubts. The Stark fanaticism is strong with this honorable crap.
I am indifferent
to the Starks or Greyjoys' plite