Quote - Can the squash be proportioned to maintain a volume?

Yes, and you can set the speed with which it returns back to it's original shape/volume.

Looks great for deformations?  Does is also do the gravity/bounce/over/undershoot we have also been talking about?

Do you think it will ever be possible to do zone-based "bouncy" hair?  I was thinking it would be like a magnet zone, but reversed.  You'd want the most bounce at the outer edges with no bounce closest to the scalp.  By bounce I mean the delay between when the mesh starts/stops relative to the parent object (over/undershoot?).