There are still going to be a couple of players at the table who will call along with rubbish. 22-77 play great in this game if you limp and sethunt in a multiway pot.
Yep, but my range to raise them is so wide that theyre not going to get paid. Theyre then check/folding huge amounts of flops, and if they call my cbet or raise I'm done with the hand.

Not much preflop raising means that a preflop raise is an unusually tight range. That makes calling with speculative hands more profitable, and squeezing with them less profitable. The other side to this is that if there is a caller or two before you squeeze, they are still likely to be reasonably week so you might have more dead money in the pot. Even so im not convinced that squeezing a 50/5s preflop raise with a hand that actually has good implied odds if you call behind with a couple of others is the best line to take.
Youre correct, and I'm probably using the squeeze term partly incorrectly. What I'm calling squeezing is probably just "raising multiple limpers lightly" (as well as being raising a PFR'r and a couple cold callers).

So my point 2 is probably point 1 on a larger scale.