I think that Trelawney has the gift, but that her pride gets in the way.
"I would never presume to predict anything so far-fetched."
She just shoots herself in the foot.

I think Dumbledore mis-handled her. He should have talked to her more, encouraged her more. I wouldn't tell her of the original prophesy, but I would tell her about her vision of Peter's escape and Voldemort's return. And I would tell her of the other little things that she saw right but interpreted wrong.

If handled properly, I can see her blossoming in the seventh book.

Comments?