I would assume most people who would enable an "auto squash" option also aren't carefully creating and curating commits. Bisect is useless if half your commits are broken. People regularly make commits that don't even build, much less pass QA and deliver a valid version of the software. These are works in progress, broken versions and should be deleted.

If you actually do like to deliver the correct number of commits then it's frustrating to work with people who don't care. In that case I would suggest making the squash optional but you could also try selling your team on doing smaller commits. In my experience you either "get it" or you don't, though. I've never successfully got someone to understand small commits.