You could just remove the latch mechanism itself as it has a tendency to rub on the roof lining when the hood is going up and down, leaving a mark and potentially will wear through the lining.
The release latch isn't fitted to later E85s. Post 2006 cars I believe don't have it at all, so its not really necessary.
You could then just glue the button shut and it wont squeak. This is what I did on my 2005. I had both the squeak and a wear mark on my roof lining so I though I would just get rid. There's a thread on here somewhere with a "how to".