Bleh, you're right.

I was thinking about command stars instead of valour points. This means that from a 8 star general all the units in the army with have a 4 valour bonus, meaning +8 morale points from the general's valour or +4 depending on where.

At any rate the penalties involved are still mean for dead generals:

-8 Morale immediately following General's death (temporary)
-2 Morale permanently following General's death (does not impact Elite or Disciplined units)