Nope. #3 will kill Squadrons. They all start at one lone member. How are they supposed to get new members if they're invisible.
It is my understanding that Squadrons are primarily intended for groups of players that have already formed, and already know each other and have already formed "groups" either IRL, using Wings or using third-party tools like Inara. Those Squadrons are not going to have any difficulty finding each other and giving themselves that initial growth spurt beyond the squadron-of-one stage.
However, if a squadron-of-one was formed primarily for LOLs, function-testing or for BGS-monitoring purposes, and they have no intention of admitting new members, the squadron's founder should at least have an option to "switch off" or "demote" their squadron in the list. Or have an "actively recruiting" button and any Squadron not actively recruiting gets pushed down the bottom of the list.
Let's face it: Squadrons as implemented are not going to be favourable for every group. If I formed a Squadron, for example, I would like to choose to be pro-Federation, pro-Empire, pro-Alliance and anti-Independent. But apparently, that's not an option; I can only be pro-one-of-those-groups. I would either have to choose one Superpower, not choose an alignment at all, or choose Independent (all of which would be the exact antithesis of what I actually stood for). And, to he honest, FD wold have had a very hard time designing Squadrons with enough flexibility that they appealed to every player group. So I suspect many Squadrons will be formed, discovered that they are of little use (or never get off the ground), and abandoned.
Is there any method in-game, at all, for defunct Squadrons to be deleted from the list? If not, then the list is going to get very cluttered, very quickly, with "dead" Squadrons. And that is what will "kill off Squadrons": if new players (who can't afford to start their own Squadron) want to find a good Squadron but can't find an active one because the list is full of dead ones. Or if there is no indicator on the list whether a Squadron is "alive" or "dead", then a newbie might be waiting days or weeks for responses to requests to join, that are never going to come.