How do you explain to an 8 year old about unwed mothers and b*****d children in a way that won't upset alot of parents?
It's unrelated, really, but the books aren't really written for children. J.K. Rowling never intended to set out to write a children's book, and she's said herself in several interviews that she didn't allow her daughter to read the books at a very young age (under ten years old). Yes, they've been marketed for children, but as the story develops and the characters grow up, I think they'll be even less child-ish.
I don't think Petunia and Lily's parents could be squibs either because squibs are the children of all magical parents and in Snapes memory Snape calls Lily a mudblood
I look to the victims in CoS for the answer to this one (and, coincidentally, Dumbledore's remark about Harry being a halfblood). All of the children attacked were children of Muggles, but Mrs. Norris was attacked because she was the pet of a squib. Squibs are not regarded as pureblood anything, they're only maybe slightly better than Muggles in the eyes of someone obsessed with being pureblood. So Snape could still have called Lily a "filthy mudblood" if she were the daughter of the squib. I don't, however, think he had any idea that her parents
were squibs. So if they weren't, he would have called her a mudblood because they were muggles. If they weren't, he would have called her a mudblood because a mudblood is defined as someone of "non-magic parentage" (according to McGonagall, I think... squibs are non-magical) and he was really angry and looking for the worst word he could use to call her at that time.
About Dumbledore saying it, I think Voldemort would have looked at squibs in the same way, and even though I don't feel like Dumbledore would, he was talking about what
Voldemort was looking at.
Do you think maybe lily and petunia got sent to a muggle orphanage because their parents died? Sort of like Voldy?
I don't think so... I mean, nothing to go for or against it, other than we know they were alive when Lily was eleven, and I feel like they were alive when Lily was seventeen (she practiced magic at home, and wouldn't have been allowed to do that if she weren't of age).