Hmm, in terms of a sense of 'morality' behind it, I'd say it's by nature gamebreaking- First off, I have to say that was pretty ingenious. However, it's a dirty trick, really- it's not the same as some Moba suicides, where you don't feed the enemy champions, it's more cheating your opponents out of a direct game objective. Looking at the same example, death doesn't count as much in Lol or Dota as it does in GoIO, as, of course, we're playing deathmatch. Even in other deathmatch games, such as CoD, death never counts anywhere near as much, as the score is so low and kills so hard-fought. So to use such a tactic should be discouraged, as it's a malicious style of playing that breaks the current agenda of teams. In fact, this tactic could be incredibly exploited:
A game on Canyon Ambush, as in the match, could see several hit-and-run attacks from Squids. During these encounters it is likely, if both teams are Cogs standard, that both teams drop armor and lose some permahull. However, this is where the tactic really messes the game up. Once the friendly Squid takes enough damage it kerosenes to the spawn, spewing enough tar behind it to halt a quick charge from the enemy. It then proceeds to kill itself. It comes back with full permahull. in this current situation, you've got 'something for nothing'- all of the tactics and damage dealt by the enemy counts for naught, while the enemy ships have sustained permanent damage. Furthermore, If the enemy team aren't running Squids themselves any of their attempts at suicidal tactics are much less viable, as it simply takes too long and other ships aren't nimble or fast enough to leave the combat zone and buy the time to kill themselves. This presents teams not able or not willing to use this tactic at extreme disadvantages. The game works as a battle of attrition- I drop your hull for 6 seconds, and in that time I afflict damage to your permahull. Everything else can be repaired, but at the core of the meta is dropping the hull as fast as you can, and dealing as much damage to the permahull in a short window of time. This tactic removes the 'perma' nature of the hull, and this therefore breaks combat as this tactic is probably limited to only Squid users.
The main issue, besides morality, which will disappear in any Cogs team going all-out to win, is that it puts the entire game on its head. If the tactic is green-lit, I'll be amazed if every team doesn't try it, or at least consider it. A Junker/Squid combination could perform this tactic easily, and the Challenger Teams will put in a lot of work to optimise this tactic to their advantage.
This tactic does add a new dimension to gameplay, giving some validity to retreat tactics. However, the game is, again, a battle of attrition, and so simply wiping the slate clean goes against its nature.
