I like the name squidditch, but the squid should be prohibited from fighting back. As a flier of a mine squid I can do a lot of damage especially in a target rich environment.
How about 4v4, free ship choice, and the only acceptable target is the other team's squid?
The squids can't shoot anything, and should be crewed by AI on repair mode.
The hunting ships are only allowed to shoot the enemy's squid other but are allowed to ram the other team's ships to allow for their squid's escape.
It would be interesting because instead of kill weapons the ships would have to bring disable weapons to stop the squid from escaping.
Flying the squid would be about running, hiding, dodging, and taring.