Attack Squids can cause temporary blindness... and they do have some nice rare gold item drops... but you can't risk killing them yourself. Why? Well, because there is a chance one of them will call home for Dad, the Kraken!
If killed by a player, there's a chance they'll call home… Find yourself a Girlfriend or a Baby Dragon, or even better yet a Lizard, to kill Attack Squids for you. Well, ok. Go ahead. Kill Attack Squids if you want. Just remember to run when the Kraken comes after you ... or make sure you have a Kraken Repellent handy!