Not only is Squidge still around, it's expanded and grown! It is still run by the same guy, though now it's a nonprofit with a board and everything, and while they maintain all the old squidge sites as static archives, they have a new multifandom archive using the AO3 code at squidgeworld.org. They also host podfics and fanart.
For those younguns in the crowd, back in the day erotic fanworks--especially slash--was not welcome very many places. Walter was willing to host it, and has been a haven for NSFW fanworks since 1994. The various archives and so on hosted at squidge.org were never very large, compared to lots of other archives, but they were a necessary part of the fannish ecosystem, and I'm really glad that there is now a structure in place to keep the whole system running beyond just "Walter's a great guy willing to donate lots of time and money." Walter is a great guy! but like. it's good to have other people to help out and keep things going in the long run.