Wolfie

Despite the claims introduced before, on the panels we were shown their previous relationship during their childhood at no point did Ino seem to downgrade Sakura -either physically or mentally-, on the contrary, she's constantly shown trying to lift her spirits, like when she complements her looks:

Let the world see that pretty face!! Strike a pose!

At no point did Ino downgrade Sakura or put herself above; telling Sakura to show confidence doesn’t automatically put her in a higher position in their friendship.

To explain myself further: providing help when someone needs it isn’t the same as putting oneself in a morally or physically superior position. Their relationship is of equals regardless of Ino supplying emotional support. The fact that Sakura inwardly elevates Ino's relevance in their dynamic isn’t Ino’s responsibility as everything Sakura thinks of Ino is never expressed (translated, Ino isn't aware of her position inside their friendship, as she's never told her relevance). Furthermore, Ino never states that she considers herself attractive or prettier than Sakura herself, every time they speak on the matter Ino tells Sakura to be more confident as she has a "pretty face".

Him! Hah! He just struts around, acting like he’s so cool.

At no moment does Ino seem upset at Sakura for liking the same boy, in fact, she chooses to lie about how she feels for Sasuke in order not to start a conflict. This is, of course, not specified in canon, but since Ino doesn't display her feelings for Sasuke and, quite the contrary, she criticizes him, it's safe to assume she lied about her feelings.

And even if Ino is upset about Sakura liking the same boy as her, something that is neither expressed nor shown, she doesn’t act around it.

Furthermore, Sakura engages in conversations with Ino about Sasuke (Hey, Ino! Sasuke seems to like girls with long hair, so I’m going to grow mine…) and it doesn’t seem as if Ino dismisses the subject out of jealousy.

Everyone says you’re after Sasuke too, Ino…

I'm aware that some fans, specifically S//S and Saku-Ino fans, claim that Sakura assumed Ino liked Sasuke and Ino, in retaliation, started to like him back to make Sakura jealous (?), however, unlike those fans who think Ino's whole character revolves around Sakura (she is, indeed, a supporting character of her, but she outgrew her role to the point where she's barely seen with Sakura after the Chünin Exams) I do believe that Ino truly liked Sasuke and that she was indeed surprised by Sakura having equal feelings for him.

[I will here say that, personally, those who diminish Ino's feelings for Sasuke to use that "lesser" type of love (there's nothing like a "lesser" type of love, there're different ways to love someone. Caring for someone romantically doesn't reflect equally on each individual), as a justification why Sakura "deserved" Sasuke are carrying a sexist view inside their reading of the manga: Cartoon or not, Ino is still a representation of a woman yet, for them, she isn't as valuable as Sakura because she loved Sasuke in a different manner she did.

They're measuring Ino, Karin, and even Sakura's value by the way they display their respective feelings for a man.

In the same manner, Karin, who shows more sexual desire for Sasuke (I will not deny her romantical feelings, but she is clearly more driven by her sexual interest in him), is not less of a woman or less deserving of being with him because of the nature of her feelings.

There's no such thing as a "suffering-meter" that determines which character suffered the most out of love and, therefore, who deserves a happy ending with the object of their affection. That not only links love's nature primarily to suffering but also measures a person's romantic value in terms of how much pain they can endure (either for their significant other or provoked by their significant other).]

Again, Ino doesn’t act around her feelings for Sasuke (in the next flashback Ino -despite knowing Sasuke likes girls with long hair, keeps her own hair short) nor around her friend's attraction.

It was Sakura the one who decided to break their friendship because someone (unspecified) told her Ino liked Sasuke in the same way she did.

This is how we learn about their breakup:

Chapter 53

If it's true... that makes us rivals!

Keep in mind that, until then, we only knew Ino was Sakura’s rival, it's Shikamaru the one that introduces the idea of Sakura and Ino being best friends once, and we have these panels to understand a little bit more about their prior relationship.

This rumor is, in fact, truthful as they do become rivals -so why would Ino allow this break-up if she truly didn't like Sasuke? It makes absolutely no sense, meaning that this theory of Ino faking her attraction to Sasuke is completely false, as she canonically is infatuated with him. Furthermore, when confronted, she chooses not to lie about her romantic interest in him to Sakura. The expression of Ino when hearing Sakura’s words is “uh-oh!”, which means she was keeping her feelings secret from her friend.

In chapter 54, we have a sneak peek at Sakura’s development as a ninja: After Naruto and Sasuke fight Orochimaru (and pass out), and Lee sacrifices his well-being in order to save her from the Oto team, Sakura cuts her hair as to free herself from Kin’s hold. Up to this point, we know this part is significant because of what Sakura thinks before doing it, but by Ino’s reaction, there’s something far deeper going on (Hey, Ino! Sasuke seems to like girls with long hair, so I’m going to grow mine…).

Her attack against Zaku isn't successful and, after barely hurting him, she has no more energy to continue (so she bites him). And here's when we have Ino’s flashback:

Chapter 54 - The flashback continues but all have been addressed previously.

The rivalry was started solely by Sakura. There’s no denying that Ino took up on that rivalry and started to act consequentially, but she wasn’t the one initiating it.

"I noticed your hair is lot longer, Ino" "What is it to you, Sakura?!!"

Let's acknowledge something, in this specific panel, it was Sakura who started their interaction (in a hostile manner, also) because she wanted to tell Ino about her position in Team 7.

She assumed Ino grew her hair long because of Sasuke -it isn't clear when was their fallout, but it must have been years prior to their graduation, so either they didn't see each other as much (or at all) since they went their separate ways, or Ino grew her hair long shortly after the beginning of the show, so there were at least a few years after their breakup when she still has her hair short.

It's safe to assume Ino did, in fact, keep her hair long for Sasuke's sake, yet it's not confirmed she did so to appeal to him, as she keeps growing it after his departure and it's shown how most people of her clan have their hair in a ponytail style, including her father.

So Ino, you'll never beat me now.

Despite some translations stating that Sakura said “I won’t lose to you anymore” (we were shown at no point in the manga how Sakura exactly lost against Ino), the official translation states otherwise -Sakura never exactly “lost” against Ino, nor Ino against Sakura.

Sakura's statement is based on Sasuke being on the same team as her, therefore, for this fact alone, Ino will never "win". Their whole rivalry is based on Sasuke. Now that Sakura is assigned to the same team as him, she has a better chance of winning his romantic reciprocation, therefore, Sakura's prospects are better than her rival's, which makes her the sole winner.

Yet, regardless of their mutual hostility, Ino still jumps to save her former friend, which means that she still has a deep connection with Sakura. Her face when remembering their childhood was a deeply troubled one, perhaps even mournful. In addition, by this point, Sasuke is unconscious: He isn’t able to see Ino’s heroic act, something Ino is aware of yet acts as if that is the sole reason why she jumped in.

After the fight, we have these panels:

To put some context: Naruto asks Sakura who “these guys are” when seeing Shikamaru, Chöji, Lee, and Ino; and after Sakura “thanks them”, Ino thinks that she’s selling herself short. Ino is shown constantly either telling Sakura or thinking of her as someone pretty and capable yet still self-conscious, even tho Sakura would have likely died had Ino and Team 10 not intervened, as Sasuke awoke after their tactic failed. Ino and Team 10 were saved by Team Gai and Sasuke, not Sakura.

During their fight in the preliminary rounds (CH 71), Sakura is particularly cruel:

First of all, she claims control and power of decision-making over a boy who has rejected her advances twice and who's not even present at the moment (he could, and honestly would, easily deny them both of the romantical reciprocation they sought). She starts their fight by trying to downgrade both Ino’s self-esteem (physically) and status in their “rivalry” (which she claims is now non-existent, as Sakura is the "winner" by being in the same team as Sasuke) -Ino’s words are a response to Sakura’s attitude.

[Kakashi saying that Sakura isn’t mean doesn’t make it automatically true -first, Kakashi doesn’t know Sakura that well as to claim she wouldn’t bully a person just because (she often displayed such an attitude towards Naruto during their first interactions, particularly when she told Sasuke that Naruto was annoying because he was parentless, Kakashi saw and knew none of that). Second, what he knows about Ino and Sakura’s relationship is what he read on a piece of paper -he knows nothing about how they actually interacted, nothing about their “power imbalance”, and, furthermore, he does nothing about Sakura’s insecurities -he hoped that Sakura would come around when the Chünin Exams came, but the whole reason she did so was because of Sasuke’s support.]

Sakura internally acknowledges Ino’s relevance in her life (1 and 2) yet none of that is actually told to Ino -who’s left in the dark. The last impression she possesses of Sakura is about her not being good enough to maintain a friendship outside their respective crushes on the same boy. Sakura, even without them being friends, still seeks Ino’s acknowledgment -the only one who is then made to do something for their relationship is Ino.

Personal opinion: Sakura hasn’t surpassed Ino. Much less at this point in the manga.

It’s Sakura the one who makes their rivalry just about Sasuke (here), while Ino states that she will not allow her to “show her up” (thus, for her, it seems to be more than just their shared crush on a boy, even during Asuma's last speech he tells her not to allow Sakura to win in "ninjutsu and love"), Sakura solely focuses on being on the same team as Sasuke as a signal of superiority; something she did absolutely nothing to gain as it was mere luck:

The teams are to be balanced and that’s why they put the dead last (Naruto) with the Rookie of the Year (Sasuke), there’s no canonical mention of Sakura’s part in the matter. The belief that she was put there because she was the “brightest” is a fanon belief (x). Furthermore, according to the Report Cards in the First Fanbook, Ino was behind Sasuke; making her the second-best overall and the best kunoichi amongst them (x).

Furthermore, Kakashi specifically visits Naruto's house alongside the Hokage who introduces him to the team he'll be leading, and at no moment do they even mention Sakura.

Meanwhile Ino, canonically speaking, would never be put on the same team as Sasuke, as she's the Yamanaka heir -her destiny was always to be with Chöji and Shikamaru.

Here

I’m not your little tag-along anymore Ino

Sakura says this in order to gain an emotional reaction -Ino is shocked by the words because she's never shown to consider Sakura to be what her former friend claims she used to be. Sakura is then painting the memories of their relationship in a negative light, downgrading it. What for Ino was a real friendship, to Sakura was a relationship of power.

[This is not a negative thing per se, Sakura needed a support system that Ino provided as she was too shy to socialize with anyone. What she's saying now is that she doesn't need Ino in order to interact with others. For Sakura is a positive thing, as she probably hated being "Ino's tag along", however, that doesn't change the negative impact that it has on Ino who never saw Sakura as a burden.]

Sakura's views of their dynamic diminish its relevance in her life and put Ino in the wrong (almost making her the abusive side of the relationship). Ino never reached for Sakura in order to make her her “tag-along”, Sakura was the one who put herself in that position.

I'm not blatantly denying Sakura's views on their former friendship, but from what we can see in canon, those views are either a lie she tells Ino to emotionally drag her during their match (stated before by Kakashi, she wants Ino to take her seriously), or a twisted version of the events transpired.

Much like with Sasuke, the fact that Sakura puts the weight of her well-being on another person’s shoulders means that she’s not responsible for the outcome or what her actions might entail: That’s why she makes Ino responsible for their fallout -hadn’t Ino liked the same boy, she wouldn’t have ended their relationship.

Sakura calling Ino a witch.

At the end of their fight, is Ino who -again, reaches out to Sakura and waits for her to wake, and, again: She gives her support.

We have a new interaction between them in CH 93 -where we see both of them visiting Sasuke in the hospital and bringing him a flower, there, we get to see them talking outside a ninja setting and inside Ino's flower shop.

1) It's established Sakura doesn't visit the flower shop until then.

2) They still bicker over Sasuke, the basis of their relationship hasn't changed after the Chünin Exams, but they seem to get along better.

3) Sakura learned the flowers' meaning in order to compete with Ino.

They even sit together in CH 99 to see the one-on-one fights of the last round of the exams, and while both Ino and Sakura are equally concerned about Sasuke, it's Ino the one who tells Sakura to cheer Naruto on during his match. How is Ino this "bad person who diminished Sakura" when she shows nothing but concern for her crush (Sasuke), her former friend (Sakura), and her rival's teammate (Naruto)? Furthermore, in CH 105, Ino realizes Sakura's change in mood when she admits (internally) to being somewhat jealous of Naruto.

After Shikamaru's match, once Sasuke appears, Ino compliments Sakura's team, praising both Sasuke and Naruto; Sakura's reaction isn't shown as the main focus is Lee -who hears Ino speaking-, but it amazes me how many people try to paint Ino's character as "shallow" and a "bully" when she has done nothing but encourage and praise those around her even when they're not close enough to hear her.

Then, after Sasuke's Retrieval Arc, Ino even goes as far as to look for Sakura once Shimamaru's team returns (x), and she even prioritizes Chöji before Sasuke (who they don't know actually left, x). How is Ino such a shallow, careless monster (who doesn't truly care for Sakura) if she goes out of her way to find her and inform her of their friends' return? Wouldn't have she taken the opportunity to visit Sasuke by herself? Wouldn't she have chosen to visit her crush first rather than Chöji if she was that obsessed with him and against Sakura?