+4 to both skills works.
Flatten and Squeeze are very similar mechanically, so I don't like creating a new version just for the heck of it. Besides, a sheetlike Outsider seems like it should be more able to squeeze all the way down to a Fine than a bony undead would be.
I prefer them with Flatten. I like the idea of them retaining their two-dimensionality. Also, I can't be bothered changing it.
Hmmm. How about smothered victims create crazy bones as spawn?
According to that article's flavour, Crazy Bones arise from human remains that have been uncared for.
I think I'll cut the Smother-Spawning from the Tatami Goblin and leave it mysterious to match the flavour text.
Updating the "Tatami Goblin"
Working Draft to remove the "If a flying spirit smothers an intelligent living creature to death, a flying spirit will form from the corpse on the next night with a full moon. This new spirit will not form if any spell with the Good descriptor is cast on the corpse before the full moon, or if the corpse has been destroyed."
Furthermore, I propose giving the "
Crazy Bones" Flying Spirit a slow-delay version of Create Spawn, since it's a better match to an Undead's modus operandi.
Like so:
Create Spawn (Su): Any humanoid slain by a Kyokotsu becomes a kyokotsu if the victim's remains are abandoned. The victim becomes a normal kyokotsu at midnight on the first anniversary of its death. It is not under the control of any other kyokotsu, and does not possess any of the abilities it had in life. The victim will not become a kyokotsu if the corpse is buried, destroyed (usually by cremation), or if a simple funerary prayer is spoken over the remains - the latter requires a DC 10 Knowledge (religion) check. Furthermore, a kyokotsu can not form from a corpse that has been affected by the turn undead special ability or any spell with the Good descriptor.