Squids works in West/North West winds. The area gets very packed and is already overcrowded from the locals. Weekdays it's fairly free, but come the weekends there can get over 30 kiters in the area the size of three football fields (unless you go upwind into the open choppy water) with another dozen or so waiting on the shore.
There is only a very small launch/landing area with nearby trees and powerlines.
A couple of instructors use it as well, so you need to be aware of Kamikaze students and other beginners.

In my opinion Newcastle riders miss out on a lot of fantastic locations all around Lake Macquarie. I kite in many location by myself (with one or more friends on the shore for safety). There are plenty of locations closer to Sydney that are as good as Squids Ink (again in my humble opinion) which have seen but one kiter ever (me). I would suggest taking a look at a map of Lake Macquarie, or you could email me if you like. Good luck...