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Does any build/collect and play them? If so using what rules?

Someone at Caledonian Revolution tournament in June had a full army of squats. Running them as Astra Militarum with a Knight, I believe.

Fully converted custom army - couple of photos here...
https://imgur.com/a/r4Eps

Impressive.

There is a closed Facebook group with 1500+ people in it. Search 40k squats in groups on Facebook. Lots of good info and pictures there.

Most people seem to play squats with either a guard or chaos codex. Personally I lean towards the chaos codex as the options seem to fit the best.

Squat heavy weapons - havocs
Squats - cultists
Exo squats - chaos terminators
Bike squats - chaos bikes

You get the idea. Not sure how effective the list would be, but if your playing squats I'm sure ur not out to win games, I'd assume you're playing to have fun and you like the models.

Time of madness

Also, the new Age of Sigmar models for Kharadron look to be pretty good for tech-dwarves. And also give some interesting jumppack troops options. I've been tempted by some of them myself to be honest.