Generals 2

How is it almost identical? There are different lengths and placements of cover in the game where some are better for larger squads and some for smaller sized squads. Depending on how large the squad is aoe can be more or less effective. Different building will have different effects for different squad sizes due to the available places for shooting varying. There is math involved in going around with a full squad and with a damaged squad. Run around with a damaged squad and you can get more map control or go back to base to reinforce and concede map control in the process. The upkeep mechanic would contain much less economy depth in it as each squad has population. Yes, you could make all the squads into single units but that would just ruin the depth, strategy, and limit the mechanics in the game. Squads make sense for Relic games because they're designed to be tactical, but they certainly would make sense in an a-move blob game like SC2.

Eh I guess, but you can still implement cover such that it can fit a small or large number of individual infantry, or different types of cover for different types of infantry. I know you can do that with squads as well, but the point is you can simulate almost anything you can do with squads, with individual infantry. Thus the mechanical differences between the two aren't as drastic as their appearance makes them out to be.

It creates a variety of different types of units on the battlefield rather than just one single type of unit.

True, but C&C games handle that with tanks/vehicles/planes etc. So I just don't see why there is a need for squads in C&C games.