I actually like the 'everything is square rule'. 3.0 was supposed to do away with the idea of facing in combat, so you don't have to pay attention to where a creature's head or feet are. But that's difficult when you're fighting a giant worm which is one square wide and 4 long.
Player: I go whack the worm in the head, right here. (points to the creature's 'end')
DM: There's no facing in 3rd edition, that's not his head.
Player: Fine, I'll whack him in the arse. (points to the other end)
DM: There's no facing in 3rd edition, that's not his arse.
Player: So you're telling me that this 4x1 creature has neither a head nor an arse??!!!
All joking aside, maintaining some realism with that creature's threatened areas is nearly impossible when it its a long thin stick, but somehow lacks a head, a rear end, and any other discernible anatomy. Why should its nonexistent head be able to reach so much further on one (parallel) axis than it can on the other (perpendicular) one?