The reason for increased squad sizes is to alleviate the amount of instant wipes that occur, as well as to lengthen the time that small squads (like grenadiers) can be in combat before they have to retreat. This feature is tempered by (goes both ways actually) the increased damage values of weapons, so that engagements don't get too drawn out.

The problems with increased squad sizes are, amongst others, that snipers have less effect, but i have buffed them to take this into account. Another problem is that the effective firepower when garrisoning buildings doesn't scale with the increased squad sizes. Some also say that objects of cover are too small for these new sizes, but that's not the case in many situations, as infantry are good at fitting into small spaces.

In the end the question is whether the change is worth it. I think it is, but it's subjective so it depends on which camp you fall into.

My only problem with it is the unit clipping into each other ang going through each other when moving :D it looks bad and breaks immersion.