I do read the git commit history, and specifically to find problems like these. Squashing commits indeed sounds like a terrible idea to me.

There are also people who insist you always need to rebase your commits before pushing, in order to get a nice, linear history, and again I disagree. It's fine when you're rebasing a very short (single commit) history, but for a long history, it not only gets very tedious, but when it introduces new bugs halfway through that history, you may not notice. You will notice later, and then tracking that bug you end up in the middle of your own (rebased) history and you may wonder why you ever did something so stupid, when the actual cause of the bug was the merge of two histories at the end of your work.

I do rebase sometimes, but only when the history is short and I can easily see what I'm rebasing. A history longer than 2 commits should not be changed.

I never squash.