DeHe,
I'd agree with mnmom23 - its still a molehill.
My DD8 was the same way at 5. She had an amazing ability to cut people down verbally without realizing that she was being as mean as it came out. Often times when we talked about it afterward she would be in tears realizing that she had actually been as mean, if not meaner to the other person than they had been to her. She didn't understand the social cues either in terms of telling people they couldn't play before they had even asked to play. However, she would get very upset if she witnessed a person being as verbally cutting as she was to others. It was a strange situation.
I am happy to report though that she did grow out of it, and now there are very few times when she resorts to that sort of come back. (Unless of course it is with her little sister, but I know we all behave differently with little siblings than with others.
)
