Dionysus9,

I checked your theory on my LAN and it doesn't hold up. I don't see any additional morale penalty just by commanding and attack. There is a morale penaly from being in the proximity of enemy units. So it's possible for units to rout before contact. This penaly has a range of 1.8 tiles. That's 49 infantry men stretched out in a line which is a pretty fair distance. As several units converge from a distance on the enemy the morale penalties will accumulate and make it tough for the enemy units to stand their ground. Check out the morale penaly thread that I just added something to, and go to tootee's Shogun Academy site to see his nice documentation of all we know about morale:
http://shogun-academy.tripod.com/

MizuYuuki ~~~
Clan Takiyama ~~~