"Intuitive version": Let $f: \mathbb{R}^n \to \mathbb{R}^m$, $n\ge m$, be a smooth map. If, given $q \in \mathbb{R}^m$, for a fixed point $p \in f^{-1}(q)$ one can define a maximum-dimension vector space using the partial derivatives of $f$ then there exists a diffeomorphism between a neighborhood in $f^{-1}(q)$ of $p$ and $\mathbb{R}^{n-m}$ (i.e. one can "smoothly deform" a neighborhood of $f^{-1}(q)$ into $\mathbb{R}^{n-m}$).
When I say "non-degenerate" I mean of maximum possible dimension, which is the maximum possible number of linearly independent vectors which can be defined by the partial derivatives.
One has to specify the point $q$ before specifying the point $p$, because otherwise one would try to construct a diffeomorphism between a neighborhood in $\mathbb{R}^n$ of $p$ and $\mathbb{R}^{n-m}$, which obviously does not make any sense -- we have to specify that the neighborhood is in $f^{-1}(q)$.
Questions:
1. Is this way of thinking about the implicit function theorem correct?
2. Why is $f^{-1}(q)$ of dimension $n-m$ when the dimension of the space spanned by the partial derivatives of $f$ at every point $p \in f^{-1}(q)$ is $m$? If $f^{-1}(q)$ has $m$-dimensional tangent spaces then why should it be an $n-m$ dimensional manifold, and not an $m-$dimensional one?
3. If for one of the points in $f^{-1}(q)$ the derivative of $f$ doesn't have full rank (i.e. we can only define a degenerate tangent space), then does that make that point a singular point of $f^{-1}(q)$?
4. If $p_0$ is the point from the third question, then is $f^{-1}(q) \setminus \{p_0 \}$ a smooth manifold? The example I have in mind is the singular point of a curve, e.g. $(0,0)$ of $y^2 - x^3=0$.
5. What prevents the following scenario: for every point $p \in f^{-1}(q)$, $Df(p)$ has rank $m-1$, so $f^{-1}(q)$ is a manifold of dimension $n-m-1$? Does the constant rank theorem allow this possibility, explaining why the constant rank theorem is a generalization?
First, I don't like your use of the word nondegenerate. Why not use the same language the rest of the world does and say the derivative mapping $df_p$ has rank $m$?
$f^{-1}(q)$ does not have $m$-dimensional tangent spaces. Think about linear equations. If you have $m$ independent linear equations, they impose $m$ independent conditions on your $n$ variables, and you're left with a linear subspace of dimension $n-m$.
As far as number (3) is concerned, $p$ need not be a singular point. Consider $f\colon\Bbb R^2\to\Bbb R$ given by $f(x,y)=x^2$. $f^{-1}(0)=\{x=0\}$ is perfectly nice, even though the derivative is $0$ at all $p$ in the set. So the answer to (4) is, "Sure, if the derivative has maximal rank at all other points $p\in f^{-1}(q_0)$."
I believe I already gave you a counterexample to (5). The rank theorem only applies when the rank of $df_p$ is constant over (an open subset of) your whole domain (not a proper subset).