I've been following this, and I've still come to the conclusion that something is a little screwy about the handling of devestated squads... while I think it's perfectly fair to say, a squad that's been cut down to a couple of survivors would be prone to stay head down on the turf until danger passes, I would also say that with a suitable NCO or junior officer hanging around the remains of the squad would be absorbed into an existing formation.. in combat or not.
However, NEITHER of these occurances actually happens in CM. I mean, it's hardly realistic to have a single grunt representing the remains of squad to go soldering on his lonesome simply for the sake of preserving his orginal squad, yet this is what occurs in CM. This might be applicable for a specialist, but the reality is a rifleman would either quit entirely and sit the fight out or get picked up by another squad.
I realise such mechanics were/are probably unfeasable from a game engine point of view, it's just one of the quirks of human behaviour that are difficult to model.