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Or do what a lot of other MMOs do and only restrict a player to own/be in one squad at a time, making competetive larger and reduce squad hopping. Add something like a squadron which is like a temporary party for up to ten people, for those who will complain about being restricted to one squad and unable to be with their friends who are in a different social squad.
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I actually like this idea. If you want to make something actually competitive, do this.
I also agree with the notion of removing squad hour prizes for the reasons:
1. they are all ugly and generic
2. they bring the whole gang of nasty hat hunters from other servers to zone
3.discourage squads being used like they were made to.