Gary, it was interesting to see your comments on this page because I've recently been working on a program of just that sort. Of course you're correct that there's a lot of leeway for how the morale rules get instituted.
Another key aspect is exactly what the assumed "formation inside a figure" is. For example, if a single figure in 1:10 scale represents a line of 10 men, or 5x2 rows (my preference), or a 1-man wide column -- since it determines how many can attack an opposing formation in one turn. What's your expectation for this?