I really can't believe all the complaining going on lately.
My impression of TOD is that walkons really will not work for what is strived for here. The TOD is setup so that those players who fly with each other on a regular basis can fly in events and not be shuffled around to make the sides even or be mixed in with other squadrons. And to do this, the designers of the TOD probably need a good idea of how many squadrons will participate so that they can create a theater which will have enough targets and chances of encountering the enemy. Besides, you can fill a guest spot with a squadron and it only takes 5-minutes to join a squadron in the SE arena. You just click the "accept" button when invited, then leave the arena and come back so you are logged in correctly...2-minutes...5-minutes? I don't see the problem in humoring everyone and just doing this huge inconvenience.
I personally like that there is a squad-only event available. The flavor differs from all the other events available that just mix people up and jumble players together to make the sides even. Right now numbers may fluctuate a little bit because of the holidays. People are away visiting family or have engagements and parties. I've been to company parties and have seen two young children of mine sing in school Xmas recitles. Overall, the numbers in the TOD are still going strong and I look forward to the next frames!