That is exactly how BF2 works which may be why I didn't mind it. It adds difficulty to the game. As a leader I find myself occasionally hiding and waiting until my squad spawns on me if we get wiped. We can then push once we all are back in which more often than not leads to us advancing. This game does reward good squads, they are just hard to come by.
See what I run into playing normal mode is that no one will spawn on me. Or rather, never when I need it. I'll be trying to cap a flag or something and nothing, no help, no squad spawns. So most of the time I'll just get overrun and die. Sometimes I can cap it first, other times not because there was no backup.
Seems like it would be better if in both normal and hardcore you could only spawn on the squad leader.