i have a .25 fetish & shoot quite a few of them, 8 in contenders & 6 others in long guns. has turned out to be an expensive addiction.
if you are paper punching mostly at moderate ranges, i'd stick with a medium cased .25, less powder consumed, less blast & recoil.
i have 25/20's in an SSK carbine & an MGM pistol tube, and with heavies i think the trajectory of the round will be somewhat limiting on your ground squirrel shooting. if you misjudge distance by much, those 117/120's will drop below the target, and ground squirrels arent a very big target. i'd have to call it a hundred yard gun or so. Both mine are 1-10 twist.
my last .256win mag was a quicktwist by MGM to do exactly what you mentioned, heavies at moderate speeds. was a fun plinker, but the .256 has always been a bit quirky in the few barrels i've tried it in. (4 if i remmeber right). capable of good accuracy, but not always as agreeable, required a good amount of loade development. and i hate annealing brass, and .357's tend to split if not annealed in forming. You can however replace the extractor on your .256winmag & use a 223 extractor, & then make some nice strong cases using reformed 221fireball brass, but that taked the "cheap" factor out of it.
My favorite would be the .25TCU...a very agreeable round, 223 brass is easy to find & fairly cheap, and like the other TCU's it is an inherently accurate round.
Another option is the .25Classic (30 herrett necked to .25). MGM chambers it, i shoot it in a 15" pistol and a 22" carbine, and adds about 150fps over the .25TCU.
Gary Reeder chambers the .257 Raptor, a 204ruger improved & necked to .25... havent tried that one yet, should give a wee bit over the .25TCU, but the extra 75-100fps probably wouldnt make much difference unless you just want something different.
in between the .25TCU & the Raptor, the 6.35x47 (222rem mag necked up) and if you want to go smaller, .25copperhead (.25x222).
the small one is a tad slower than the TCU, the 6.35x47 a tad faster, but as mentioned earlier, you'd kind of just have to want one to justify it.
as for dies, CH4d sells quite a few oddballs at about $70. my .25Classic dies are Redding, call Todd Kindler at the Woodchuck Den if you are leaning towards it.
as for bigger .25's, the 25/35 offers no ballistic advantage over the .25classic, but dies are cheap & no case forming. Mine is a 24" TC custom shop, but with a long throat it doesnt care for light bullets.
in contenders i also shoot the 25bullberry, .257JDj, 250 savage, and .25x30/30AI (my favorite big cased 25 in the 'tender) but unless you plan on doing some long range stuff i'd stick with the smaller ones, they will keep you happy out to 250 or so, and i cant hit a groundsquirrel any father than that anyway.
be happy to send you loading data for the .25TCU is intersted. The big bookd "Wildcat Cartridges" also has a fair amount of info on the 6.35x47 & the .25copperhead.
Regards;
Gerald