Splash is correct, as per the DnD glossary, in your army includes destroyed units. Unless the intent was for We're Doomed to only trigger when C3P0 is only drafted with squads, then it should read:
SIX MILLION FORMS OF COMMUNICATION
Add 2 to your initiative roll for each species
you control, up to a maximum of +10 for Six Million Forms of Communication.
WE'RE DOOMED!
If C3PO is the only Hero
you control, C3PO cannot use his Six Million Forms of Communication Special Power and you must subtract 10 from your initiative roll.
Both 4th Mass and Sacred Band use "you control" language as well.