I tried playing without morale today and I have to say it was very nice, no cowards anymore(for whom I never payed money in MTW anyway... ) and it was much more fun watching the battles go on, they fight to the very last man, even when they are surrounded. I will see if I play the full game with morale or not, but I normally tend to disband losers anyway (they get these bad vices, you know... ), but we don´t know what CA has tweaked since the Demo, so I will see when I have the full version.