In the water with legs akimbo, it's going to be longer, wider, and taller than a small bus. http://www.animalstown.com/animals/s/squid/wallpapers/squid-...

Sure, there would be a lot of space between the legs and it's still fairly light. But, visually in the water a 40+' squid going to look huge.

Exactly. The bit that is longer isn't much thicker than your garden hose. Those arms are barely arms, with so little muscle they are often severed when these things grab fish caught on hooks/nets. The latest theory is that they are more feelers than arms. The squid doesn't grab prey and pull with the long arms, more it grabs then swims/jets towards the arms.