I'm a great fan of the Squats, and I could imagine
some nice situations with them. It even wouldn't be too hard to draw them, as it could be possible to make a whole story with them without drawing even ONE Squat, they are just a bit smaller like everyone else
Imagine:
Kren: "Frep, what's today's issue?"
Frep: "Well, you're standing right in front of it."
Kren: "Hum?"
Frep: "Take a look a bit DEEPER..."
Kren: o.O ... "Sweeeet. Longtime-forgotten-Squaties!"
[insert scene of LR-destruction here]
Frep: "Masters-of-hightech-weapons-Squats, of course"