I agree that Squall is not dead - I have never viewed him as dead, at least not from the Ice Strike (I did consider the possibility that (SPOILER)he died during the ending, and was revived but apparently he was more "near-death" than anything), but I also agree that Kitase proved the theory wrong in a poor way by saying that the Ice Strike hit Squall in the shoulder area. I too, do not think it looks like the shoulder area, and the wound does not need to be in the shoulder area for Squall to survive, especially if you go by the possibility that he was cured by Edea so he would be alive for questioning. Maybe, the script originally called for Squall to be hit in the shoulder area, and the scene didn't reflected that, and Kitase forgot that the scene didn't match up to what was planned, or maybe he's just remembering it wrong? Either way, I believe him when he says Squall survived, he just could have proved his point in a better way.

Serapy, you and other people who want Squall to be dead or Rinoa to be Ulitimecia, or anything else are allowed to follow fanon ideas of that, but the canon explanation is that they are not. The beauty of fanon is that it is whatever you want it to be, and canon and fanon do not affect each other - it's just only the former is true when dealing with the real story.