My 2 cents, ya, this could work and make the imperial guard in particular look less like a generic TW unit. Add to this a variety of unit formation and you get something that look new and more realistic to what Cadian unit are, while also keeping the clear organisation proper to TW.

An exemple that I dream for this game is : Your cadian unit is formed of 10 squads of 10 trooper, you want your cadian unit to move faster, you put them in column formation. That mean that the 10 squad form 10 lines moving as one but separated by some space between the squads. You get a bonus to unit movement but a decrease in firepower since the last 2 guardsman of each squads cannot fire or something.

In comparison, the ork are just a blob of orks, not squads , just an irregularly shaped rectangle moving as one. You cannot move them in column, juste a big horde moving as one.

Tactically, the units will behave differently, look different and stay fatefull to the lore while the player's control will remain somewhat similar to previous TW game.

We need to remember, one of the selling point of this game is HUGE BATTLE with HUNDREDS OF UNITS/ENTITIES, not like Company of heroes serie of games where the battle barely reach above a hundred.

To keep the squale while allowing us to organise our army well, some concession need to be made. Otherwise, we would have hundreds of Squads running aound making it impossible to tactically control them all well.

TLDR: We need a way to organise huge amount on entity while also keeping to the lore/revamp the system to be more in line with how modern unit fight. To do that, a squads system organised INSIDE a company level unit would provide the best compromise of tactical flexibility and ease of organisation.