Question on Morale in RTW

[Ptah]

Still, I believe that they should give a morale boost to nearby units for killing the general

Morale, both in the game and in reality, is a very slippery thing. Killing the enemy general might motivate a soldier, but whatever "boost" he had will again quickly diminish if somebody puts a steel blade through his chest.

Like said, it comes down to just what kind of situation was on the field. Being surrounded spells death for most soldiers, but in turn that kind of situation can light the final sparks of a man's soul. "Fight to the death" is exactly that kind of situation - if there is no escape, the surrounded units will continue to fight. If the fight they put up is mean enough, it just might be enough to shake and scare the attackers to rout first. It is a rare thing, but it does happen, both in the game and in reality.

There's an old military motto in the Far East that goes, "one who chooses to die will live, the one who chooses to live will die". Who knows? Maybe the surrounded band of those cavalrymen gave up on all hope, and fought their last stand, and was in turn rewarded with the miracle of life.