My opinion is you don't need to do squats, although for weightlifting and powerlifting it is an obvious specific exercise in terms of conditioning and skill.
There is not one exercise that is necessary to work any muscle with so many options - both free weights and machines.
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I cant squat a decent weight thanks to my well known back operations.
I have substituted in lunges & step-ups. Im happy with my legs as they are. I get great DOMS from lunges, so i know they're working...
Noticed you were doing step ups and this is something i have also being doing, however, i have been thinging about dropping them as i am unsure how effective they are.
I use the 40kg Dbs and use straps, but havent really find they are working and particular muscle in the leg more of a general wokrout, would you agree?