I like the idea, with some considerations. 1.2 is going to implement retreat, and I have mixed feelings about that, thinking that some units(ealry units, should not get retreat). I thought they were going to implement it with a level of acquired vet but that turns out not to be the case.
If they were to only give certain units vet though, the conscripts would be a resource sink mid to late game and people would not buy them over the more durable retreatable units. I think that some way of making conscript replacements, and even new squad buys, cheaper at about mid game (with some sort of upgrade at the barracks(costing fuel), this could mitigate the decided disadvantage of not being able to retreat with those early units.