Assume that $\frac{x}{0}$ (and therefore $\frac{0}{0}$) is undefined and $\mathbb{Q}$ is our universum (when I tried to do it for $\mathbb{R}$ things just got way too complicated; if anyone knows a generalisation akin to mine — and possibly more correct — please add it to your answer).
We write
$$x^0 = x^{1} \cdot x^{-1} = \frac{x}{x} = 1; \quad x \neq 0.$$
We know that
$$0^x = 0 \; \text{ because } \; \underbrace{0 \cdot 0 \cdot \dots \cdot 0}_{x} = 0 \; \text{ for } \; x \in \mathbb{N}, $$
and
$$0^{a/b} = \sqrt[b]{0^a} = \sqrt[b]{0} = 0 \; \text{ for } \; a,b \in \mathbb{N} \; \text{ or } \; a,b \in\mathbb{Z}^-$$.
Then we consider the case
$$x^y \cdot x^0 = x^{y + 0} = x^y,$$
and plug for $x = 0$.
$$0^y \cdot 0^0 = 0^y = 0 \cdot 0^0 = 0 \; \text{ for } y \in \mathbb{Q}^+,$$
and now we have a scenario $0x = 0$ (where $0^0$ is our $x$) and we can't divide by zero (and write the "solution" $x = \frac{0}{0}$). Because we know that $0 \cdot z = 0$ for every $z \in \mathbb{Q}$ the solution set is $\mathcal{S} = \mathbb{Q}$.
So I've heard that asserting $0^0 = 1$ is why binomial theorem (don't ask me what that is, I've just heard of it, I'm a high school student currently) even works in the first place. So the way I see it, the assertion of $0^0 =1$, $0^0 = 0$ or any other equivalence $0^0 = z; \; z \in \mathbb{Q}$ is valid because $0z = 0; \; \forall z \in\mathbb{Q}$ holds. So we essentially select whatever value "fits" for us in a certain context, right?
Please correct any of my errors and outline the whole "being able to decide what the value is" thing. It will help me to understand mathematical concepts much deeper.
P.S.: I've blindly assumed the equivalence $\sqrt[b]{0}; \; b \in \mathbb{N}$, but I have no idea how to prove it. If you included the proof of this statement, that'd be a nice bonus. Thanks!