I dont know anything about getting the bone out of the tail (didn't even know you could) but from my experience a plain old squirrel tail with the bone won't rot. and i've kept many a squirrel tail. otherwise if your not interested in keepin it, you can sell to a fish lure company like mepps or something cuz they make lures out of squirrel tails. usually a single tail will go for about $0.15

and like treeclimber said, you can eat squirrels and most other animals you shoot.