Hmm, in my current fortress Wealthchannels, pretty functional.
Specialists are in a squad named after their profession (Crafters, Farmers, Metalworkers) and equipped with Crossbows and Leather Armour. They have training facilities but no scheduled training. Miners (including my Woodcutter) are also in a squad, but without uniform (because they somehow won't put it on anyhow).
Haulers are in squads called "First Militia", "Second Militia" etc. They are clad in iron, armed with spears, and train one month per season. Since they are usually the ones to spot thieves, I can then order the squad to kill the thieves, and they will stab the intruder instead of running away in panic.
"True Soldiers" currently are in Squads named after their function: "Entrance Defence", "Cavern Guard" and "Melee Guard" (in front of the baron chambers). I had a "Ranged Guard", but it was disbanded after toxic vapours killed two thirds of the squad and because Ranged Weapons are considered honourless in my fort. They are clad in steel and equipped with a variety of weapons, which are currently upgraded from steel to adamantium.
Nobles are also in a squad and usually carry my useless articfacts (rose gold greaves and the like).
Nobles and Specialists are never called upon, but it's really helpful in Dwarf Therapist to have the Squad assignments, as it groups my Dwarfs nicely.
I love the idea with the european armies, "7th Full Mechanisms" or the like. I think I'll check for some awesome historical event from my fort and rename the elite squads. The surface squad has to be called by the artifact iron mace its most successfull member wields.