How about limiting squads to have 4 or 5 people, and then give some extra benefits? If the squadmemembers were close enough to each other, they should see each other's enemy targets. Squadmembers should also heal/build each other or each other's turrets faster, this would actually encourage people to stay together.
Well I might as well say the same thing I've said in the other 15 squad suggestions threads that have made the same suggestion in the past and garnered the same response. Certain skill-based radius bonuses are planned for squads to encourage squad-members to fight together. If a player limit within a squad becomes nescessary (and I don't believe it will) it should definately be higher than 4-5.
A standard 'Squad' In the millitary (In UK anyway) is made up of 8 men, split into 2 fireteams if that helps at all
That could be because Empires is really quite dramatic in scale. Obviously you don't hear about things that are already there because... well.. you can already see them in-game.
So, if Krenzo is the only programmer, than everyone in the suggestions fourm is pressuring him to do something or other. Just something to think about. :p
Remember the sticky Orginization thread. Once this topic is discussed post it there with pros and cons as well as a link to this thread. We have many things planned but with so few people and so much work it helps to see the community is interested in one idea or another. If you post there we will be able to more efficiantly work toward these goals.