Are you asking that the relative sizes of squads should trump their expressed side preference? I can't see *that* making too many people happy.
So are you saying that in order to make the most people happy, the larger squads get preferential treatment on side preference because they have more people? I'm not being mean here but just trying to give you another way of looking at the way sides are split up. Viper61 was pointing out that it is easier to coordinate a single large squad then three small squads. So, yes, I'm suggesting if two larger squads (assuming there are only two in FSO) are requesting to fly on the same side, the squad that has flown on that side the least should get their preference.
As an example let's say there are 300 players, the split will be 50/50, and all squads are asking to fly for side B. Putting all the larger squads on side B will not make more people happy. With the 50/50 split, there will still be 150 people not happy flying for side A no matter what size squad they are in. Therefore you might as well make the squad size distribution the same for both sides.
Is the extra effort to balance squad sizes between the sides worth it? I really can't say. Things have been working the same way for years and everything gets rolled up into the fog of war anyway.