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In a 1000 point WWP list, is it better to run fully upgraded units of wracks in 2 squads of 10 or 4 squads of 5?

I usually attach Hemies too them, so idk. I just don't think WWP in 1000pts is a good idea in general. You're only playing on a 4x4 board. But I guess I'd go with 4 of 5, more KPs but more you'll be able to use liquifiers on 4 seperate squads.

Who said he's playing on a 4x4 board?

Well, a WWP can be difficult to set up if you go 2nd.
However, if you go first, it should not be a problem.
Give it to say, an Archon leading a unit of Wyches or Incubi in a Raider. In this way, you can open it midfield in 1st turn so that
the reserves can come out starting in turn 2.

Usually 1000pt games are played on a smaller table (4x4) because the armies are smaller.