This is less a custom squad and more a weapon mod, since the rest of the squad's equipment is vanilla. Selfless destruct is amazing good fun once upgraded, but it honestly just becomes kind of OP at that point (not as much as the vanilla ice generator, mind you, but still). I also don't think it was a very good idea to give the Prime 1 HP, because all that does is greatly reduce the variety of viable pilots, more-or-less forcing you to take the Zoltan or Rockman on it.
I would say that this squad at least utilizes its gimmick better than ACID Judoka does though, and is generally less incoherent and difficult to get on with in its design than that squad was. Overall, I give this squad a C. It needs unique weapons and sprites, but you have a cute idea here.
EDIT: On review of my rating system, I have discovered my original C rating doesn't quite fit with the paradigm I ultimately set for reviewing mod squads and a C- would be more accurate. The C- originally given to ACID Judoka would become a D+.