I will bet the reason you won't get this and why your squad logo is so small when it's rendered in the MA, is the same reason we have always gotten mutual self protection hoards. And why you cannot toggle to a red guy Icon mode showing his game ID.
INK you complain now about side switching times so you can get at fights. If every squad has it's own unique skins like WWI German Circuses. How bitterly are you going to complain in these forums because no one wants to consciously feed themselves to the muppets when they show up in a sector as a group?
Maybe a compromise and proof of concept could be squad skins in the AVA. Where each squad taking part in the war can submit skins for the various rides. Then generic but, historic based "pre combat unit assigned" skins are produced to which your squad or a skinner can update it per some standards set by the AvA staff.
In the MA many players who allow skins to show get the constant micro stutters when skins get loaded during their fights. Add squad skins to that, along with the administrative backend management of those skins and their aging, squads coming and going, and the extra in game processing added to each player.
It might be simpler to ask for an updated Icon toggle that will give you a 5 to 7 character ID pulled from the player's squad name. Players who create single player squads in lieu of Hitech allowing macros would become well known entities. And some genius would come up with a single player squad name to which the 5 to 7 character pull would result in some naughty text simplification like "FUYPOS".