Funny thing, before reading this, a couple of days ago our gaming group was discussing "post-bioapocalypse squats" and came up with some pretty solid ideaa:
Formations of robots (very limited types, perhaps just 2) and tarantulas supported by gyrocopters and plenty of airships (including the overlords). No squats whatsover fighting as infantry. The robots would have some limits on orders (we discussed some pretty complicated options here...). The big tracked WE would be replaced by huge airships (yeah the large flyers from the dystopian wars got me itching to do some conversions) with mostly defensive capabilites and C&C.
C&C - the large airships would have command and control centers that would enable robots within a limited range (like 30cm) to ignore the limitations on orders.
Drone Swarms - The large airships (or some of them) would be surrounded by large swarms of small automated flyers that could be used as:
Attack weapons just by including a stat line for these. this would represent the flyers acting as kamikaze. Suggested with very short range (perhaps just 15cm).
Defensive weapons by giving a -1 cover save
According to game balance and airship design add AND OR for these two options according to taste

Got to finish my current TOEG to try this. the possible conversions using the dystopian wars range almost got me derailed into starting a new army there and then!
The problem with the IP is crippling...