Square taper is noticeably less stiff than a Hollowtech II crank. Rather than axle flex I think the real culprit is outward tapering square axles compared to a flat 16 point axle. The torque from pedaling is directed at the connection points more effectively with a Hollowtech II than the outward tapering square axle where force can migrate along the taper outward to the 8mm bolt.
Add to that a larger diameter hollow axle is larger in diameter and wider gives a much more solid connection. Again Hollowtech wins.
The downside is outoard bearing bottom brackets, due to their out board bearings being smaller in diameter, will fail sooner. However, the chain rings for the newer cranks are much more plentiful and cheaper... In addition, since you've gone non retro in one regard, you can feel free to go to 9 or 10 speed with a clutch & new faster shifters...
That and XTR repalcement BB's are cheap.
A note though, unlike square taper bottom brackets the plastic screw for the non drive side crank arm doesn't need to be very tight. One of the major contributors to short bearing life in shimano outboard bearing BB's is too much side load caused by over tightening this plastic nut. Similar a headset cap, it should be used to make sure the crank arm is fully seated & then backed off a bit and use the 2 bolts on the crank arm to make sure the arm stays put.