I like this suggestion overall. Nothing flashy, but will improve the squid. Only thing I would change is the baby squid - instead of making them growing, just leave them small. Maybe even make squid spawn at different sizes depending on the amount of water they spawn in. I know I hate seeing 2 meter long squid spawning all over the place with their stupid looking arms sticking out of the water.
Basically, I hate squid because they look and act stupid so anything that helps is an ok suggestion in my opinion.