. he cant have died permantently because you see him in the ending sequence of the credits.
damm, that's what i was going to say.
In the last part of the ending squence, you've only noticed Squall at one point only, even after Rinoa waving her finger, familiar? A strange coincidence? Or maybe it was a dream in Rinoa's visions (seeing Squall after she blinked her finger)?