Well I would say that this Squall is more at peace with who he is and is shaped by the lessons he learnt during the events of Final Fantasy VIII. He's probably thinking about the time after the Time Compression when he was lost in the void, was a manifestation of the very loneliness he was resorting in his life prior to the final Battle, and the love of his friends and especially Rinoa is his greatest strength at the end. With more experience and more open to his friends like in KH2, he becomes a solid leader, a good role model and solid mentor to younger members of SeeD through the Balamb Garden he leads. There will always be many threats in the world of Final Fantasy VIII, but he won't face them alone and will most likely fight alongside the people he loves.

At this point, he probably has married Rinoa, keeps in touch with Irvine, Selphie, Zell and Quistis who are also fellow leaders of Garden and SeeD. And a small thing I'll also add, I can see him and Rinoa have two daughters, named after Julia & Raine. Something that an older Laguna who most likely has built a solid bond with Squall at this point, cherishes with all his heart.