In Shogun there was a morale penaly to being targetted by a ranged weapon. It was -2 for archers and -6 for guns. As long as you were targetted the red indicator was continuously illuminated. In MTW, you'll notice that the red indicator only illuminates when the projectiles are actually hitting a unit. So, that is a nice improvement longjohn has made to the way the morale penalty due to ranged weapons works.