Yes, I believe the Morale is Raised when raw units are retrained in a province with a Church/Monestary/Reliquary/Cathedral. In good old STW you could see the upgrades a unit had gotten, and if a raw unit was retrained (you could actually send them to a province without the right tech and upgrade the equipment) you would now have a unit with that provinces upgrades, be it equipment, Morale or Discipline (what that ever did good in STW).

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BTW, Danish Crusades are true to history.

You may not care about war, but war cares about you!