Sugiyama isn't a SE employee. He never was. But he has copyright on the franchise along
Sugiyama has rights for the music of the franchise. He's not hired or anything, he's automatically part of the staff as a composer because of it. And Square Enix isn't going to try to do something about him when they can't use his iconic songs in their major franchise in Japan and second major overall.
Uh, why would the "studio" or team get shut down by a localization on the west? The game is already a huge success in Japan. If anything if this protest have a number, it means that the games won't come. No one on the development team would be affected by it, at all. There's no way that Business Division 6 would be affected.
You do have some point about his influence in the series and in Japan as a composer but some things that you said makes no sense. Why younger employees would do something about Sugiyama? They're not in such position for it, they're not executives, part of the board of directors, the president, chairman or CEO. They're employees so of course they won't do something about it. That without consider that they could or not see this as a problem.
And none of this is related to pride, at all.
He's a piece of shit, indeed. But he's a great composer, which is the worst part.
Well, yes. And that's a major problem considering that his music is iconic in the country.
I really doubt that something will be made about him. Without even considering the copyright issue, being anti-LGBT in Japan don't mean anything for the reality of the country, at the same time that even the part of what he does with war crimes isn't viewed as a issue either.