I usually play Minbari and, unless facing a boresight heavy fleet AND the fleet has enough initiative sinks, I will squandron my ships. Usually 2-3 Tinashi's. All that firepower roled at once. can be brutal.
Moreover, a Minbari squadron can eliminate initiave sinks quickly--not many raids (and little below) can stand up to 8 SAP DD P B and 16 AP MB TL attack dice.
It does generally depend on your opponent, Narn I don't, EA depends heavily on the opponent, Drazi and Centari I almost always do. But the first turn or so I almost always squadron.
When I use a Squadron, I group as many heaviy hitters into it as possible. Use your small ships for initiave sinks, but get as many big guns to fire at once as you can.
In short, Squadron if you think it will give you the oportunity to drop ships before they will fire; don't squadron if the reduced initiive sinks mean that the opponent will get more shots on you. THe intresting calculation (that I have dailed more often than not) is whether you can drop enough you opponent's initive sinks before the absence of your initiative sinks becomes critical.