definately like where your heading! Got my wheels spining again..hmm..use the fishes anatomy to create action.... I was thinking about using the bottom jaw somewhat like a over sized bottom jaw/lip. Also I've seen squid plugs made to swim but why not make it look as though the squid just caught something shiny {think tribute plug}. A live squid will pause after it cathes it's meal; thus it would not move as much and would look like an easy meal plus I'll bet the bass have seen a squid motionless with a peanut bunker in it's tenticles plenty of times. The bass may even be chasing anchovies for instance and just react when they see the squid with one and just attack it just because it can.
Another variation I would like to do or see done is a squid with tenticles that open when the rod tip is dropped and if the squid was head/tenticle weighted would drop back and down with its tenticles opening with a hook within the tenticles dressed with mylar for example or just a blade(flaptail) with another hook on the body. The body and head would have to be two seperate parts with the tenticles passing through a head (maybe)that would slide/move in and out within the body and ride along the thru wire possibly; I'm still trying to get my head around how to do it.