As I said in the OP it doesnt need to be like that. I doubt we will be separated into "instances," at least not in the traditional sense of the word. I doubt the second someone connect, they'd gain the ability to voice chat with [u]everyone[/u] in the zone. Proximity voice is best.

I agree proximity will be best, but I am sure you have had your own moments in various games where your team simply held up in the XBL party chat. Proximity in previous games did nothing if a party was lobbied in their own chat. I just see some sort of firm hand needing to be used to make us talk to each other, because online communities do not always breed social behavior on their own. But, Bungie has their way of working magic. They may prove me completely and totally wrong, and I would not be against that. I am the guy who goes into matchmaking with my mic on, and try to talk. Anything they do is for my, and our, benefit in this matter.

Agreed. "Squad chat," and alternative to party chat, seems to be a good idea. Provide those who want to communicate in a group an alternative to party chat, but ensure that in Squad chat there are still some ways to communicate with those outside of the squad (give people as many setting as possible). Provide the user with an alternative to party chat that promotes less of the "antisocial" behavior live's party chat does. If you know what I'm trying to say.

I believe that I do. Perhaps make it something as simple as a press of the D-pad to shift voice channels, and give an option to overlay the match-made squad chat with the party-chat replacement. That way you could keep your private chats going, but quickly tell a teammate they are about to get hit by something. I agree heavily on the more options bit. Reach only gave "chatty" as a talkative teammate segregate, and it did not really group talkative players together.