I like the thought of using Squibs or magic-related Muggles here and your arguement against them was interesting. I can't wait to see what comes of that information clearing house that Moody found. Also look forward to seeing how Voldemort responds to the fake Prophecy. Hmm, since it was stolen, what kind of internal outcry has come about because of it? Keep up the great work!
As I said in other reviews, the sniper idea is in part a tribute to a fun author's fun story, and in part a trap door, planted in case it comes in handy later. If I don't actually use it in this story, I might in a later one.
The internal outcry would be less than in canon, since it was to some degree anticipated.