exactly. He was taken at a very young age and raised by Ned, yet never accepted as his son or a Stark.
When he returned home he was outcast by his kinsmen as being a soft northman and no longer an Ironborn.
I think his actions were born through a desire to be accepted. Ned no longer could, Robb was off being King and Theon was and could never be more than a friend. He would never rule or have any power as Neds Ward.
As Balons son he needed to prove himself in battle. His plan, as deceitful as it was, was incredibly clever.
He wanted to appear to be a brutal Ironman but he spared Bran and Rickon, and in fact his ruse to appear more brutal saved their lives. Had Ramsey realised they still lived he would have hunted them and killed them for sure.