‘And what on earth’s a Squib?’ said Harry.
To his surprise, Ron stifled a snigger.
‘Well – it’s not funny really – but as it’s Filch ...’ he said. ‘A Squib is someone who was born into a wizarding family but hasn’t got any magic powers. Kind of the opposite of Muggle-born wizards, but Squibs are quite unusual. If Filch’s trying to learn magic from a Kwikspell course, I reckon he must be a Squib. It would explain a lot. Like why he hates students so much.’ Ron gave a satisfied smile. ‘He’s bitter.’
Chamber of Secrets - pages 110-111 - British Hardcover
If a Squib is 'kind of the opposite of a Muggle-born wizards' wouldn't that make a Squib more Muggle than wizard? Does a Muggle strictly have to be born to Muggle parents to be considered a Muggle, or can the lack of magic render a person, even of wizarding parentage, a Muggle?
Hermione can say in all truthfulness that she is a 'Muggle-born witch.' The nickname (albeit derogatory) for a Muggle-born is 'Mudblood.' Filch can say in all truthfulness that he is a 'wizarding-born non-magic person,' which, according to Hagrid is a Muggle.
'Squib' may be derogatory in the same way as 'Mudblood' is. Neville laments his family thought he was a Squib when he showed no magical tendencies as a child; the Longbottoms were so rattled at the thought of Neville being a Squib that they, among other things, threw him out a second-story window to see if he would bounce. So could 'Squib' actually be a derogatory term meaning the opposite of 'Mudblood'? After all, the Ministry doesn't allow Squibs to register as magical beings, and many Squibs are schooled and trained in Muggle professions. Squibs don't get a Hogwarts letter.
Wizards can be born to Muggles. Can Muggles be born to wizards?
ETA 11.22.14: In regard to this question, I was glancing through Philosopher's Stone, and I came across this, that Neville said:
‘Well, my gran brought me up and she’s a witch,’ said Neville, ‘but the family thought I was all Muggle for ages. My great-uncle Algie kept trying to catch me off my guard and force some magic out of me – he pushed me off the end of Blackpool pier once, I nearly drowned – but nothing happened until I was eight.’
Philosopher's Stone - page 93 - Bloomsbury - chapter seven, The Sorting Hat
Could what Neville says contribute to the theory and/or conclusion that Squibs are, or are not, Muggles? How do we apply what Neville said?