I would still vote for the GM's in place of the squats. The carry over is excellent and it should not irritate your ITB. The alternative is that you can continue to squat and continue to irritate the problem. I doubt that your ITB issue is necessarily related to weight so much as the ROM. My best guess is that something is rubbing funny when you squat and that is causing the pain. Since anything squatting causes the pain, it isn't going to do you much good to reduce the weight. In fact, if you were intent to continue on, you might as well go full weight on it.

...for the record that would be a bad idea.