Wouldn't this be very easy to counter though? 4 squads standing still and shooting at an infantry squad without killing it is very easy to flank with a light vehicle, a close combat squad or a flamer for example.
No close combat squad will ever get close to the LMG blob because they'll just suppress them as they show up. And even if your suppression LMG is set to do 0 damage you still have the other weapons in the squad doing damage.
Not every faction has light vehicles capable of doing anything to a blob of infantry, soviets and ostheer namely. M3, 222 and 251 simply lack the armor and damage output to actually be a threat to multiple units in one place.