Contra Maia's comment on Jul 13 3008, I think Theon's pretty broken here. He has Stockholm Syndrome. At this point he not only will say anything but will think anything his captor wants him to. I'm not sure he can recover at all from this. I don't know what that means for the broader plot. If Theon is mentally broken, what does that do to the Ironborn? Nothing? They don't care much for him after all. There is one possible implication: he will not expose the fake Arya Stark, in my opinion. Rather, he will confirm her as real because that's what Ramsay wants.