I have to say that after my personal testing I find that adding 2 points to the morale of every unit make for better battles...

While things may appear a little odd for one on one fights (peasants not breaking until they receive like 50% casualties) it is much better for large combats...

Testing with Britain vs Gual, Warband vs Warband. I had ten units on each side meeting in a long line head on head fight... Before the morale addition you would always get one or two units routing on contact with the enemy right at the start of the battle which would naturaly have the effect of lowerin the morale of the other units on that side. I think what is occuring here is unforseen effect of the morale system when you have large scale battles. When you have one, two or even three unit battles you do not see this but something happen is in larger scale battles to promote the chance of large scale routs (with or without generals).

I have already bumped up the defence stat of every unit by 6 points and this has had a good effect on slowing down the casualty rate during a face to face fight. This modification alone produces longer running battles when dealing with smaller numbers of units. But in a large battle it appears that factors other than casualties influence morale failures. The work around of bumping morale up a couple of points (in addition to the defence stat adjustment) allows for the larger battles to develop at a slower pace without actually slowing down the action. Flanking attacks and gangin up on a unit will still cause a pretty rapid rout (and arguable that they should) but at least units do not run from a straight, equal head to head fight so quickly...

I have personally found that these changes inhance the survivability of infantry in particular making them more important to the battle... Cavalry is less overwhelming as the infantry able to defend itself and does not break and run so quickly...

This also has the benefit of causing units that have routed to return to the fight sooner...