Sounds like your main focus is a decent small blade - I would say go with the Benchmite over the Squirt then. The Squirt is a handy tool but the blade doesn't lock, is a bit awkward to use due to the multi-tool thing and while it is sharp it is profiled like a chisel (ground on only one side). On the other hand the Benchmite does have a locking blade with reasonable quality steel and a decent edge profile. With a small lanyard on the handle the ergonomics aren't bad and are definitely better then for the Squirt.

I have had both for several years and I tend to carry the Benchmite in my pocket while the squirt is relegated to my portable kit (a usb memory stick container) that is close by but not always on my person.

Try out the benchmite, you might also look at the Ken Onion Chive knife by Kershaw. It is about the same size. I tried one and prefer my Benchmite.

In the discreet category another small folder comes to mind - the Wenger Alox moneyclip. Swiss army knives are pretty innocuous and one that is obviously a money clip is even less likely to attract attention. It doesn't lock but the blade is much better than the squirt and the scissors come in pretty handy occasionally.

Similarly several smallish swiss army knives from Wenger and Victorinox have locking blades - for example the Wenger Evolution S10 has a 2.5" locking blade and its looks should be pretty discrete. A co-worker swears by his Victorinox Adventurer, it is a bit bigger but still looks pretty "harmless" since it is obviously a swiss army knife.

Find a good knife store (or do some surfing online) and see what will work for you.

- Eric