I think it looks fabulous with your hair! Personally, I'd keep it just because of that. But if you can't stand it, there's NOTHING wrong with giving it to someone else who will appreciate it.
Don't give it to him, whatever you do! I know it's tempting but it's not worth it and he's not worth it.
Sorry to hear about the MySpace break up. That is just shameful (on his part, of course). Unfortunately I've had a couple experiences like that. My last BF actually left me nasty comments breaking up with me over something he's heard from friends, without even talking to me about it. But I assure you it could have been worse. He then proceeded to take all of my stuff he had at his place and dump it on the lawn/porch of my dad's house. Lol. Super classy moves, no? I'm still sitting on a bunch of sock yarn in colors I'd never use that was to become a love pair of fair isle socks in his favorite team colors.
Knitting for someone and having them dump you first sucks terribly. I was working on a scarf for a guy I was dating when he suddenly pulled a no-call-no-show on me for a couple months. Luckily I was also planning to make one for my brother out of the same yarn so I decided that one was his and just never made the other one (turns out I loathed working with that yarn anyway
). If I had finished it (and it wasn't one I already planned to make for my bro), I still would have given it to a family member or friend who'd appreciate it. Probably my mom because she loves everything I make and always wants all of it. Lol.
Anyway, your scarf is beautiful and deserves to be worn proudly by someone who loves it and appreciates what you put into it. Don't feel bad when you look at it. Take it as beautiful physical proof of how much better a person you are!