I'm sure I'm being influenced by wargames like Dominions, where crushing an enemy force with 100% casualties is something which essentially doesn't happen, and where low-morale troops will often rout after only a few blows are exchanged (10% casualties or so). To me, having a unit potentially lose cohesion after "only" ten minutes of fighting seems about right. (Note: a disbanded unit doesn't mean everyone in it is dead, and it could potentially be re-formed with the survivors. But it ceases to be a factor in the ongoing battle.)
I don't like the idea of fighting until BR is zeroed out. That doesn't seem realistic to me. It is a rare combat formation which will be able to fight on after taking 50% casualties.
One thing that I might consider is altering the penalty for failing a morale check. Thinking about Gettysburg (the movie) and the way the various units repulse and are reformed several times, I might consider a variant where morale failures are more like PHB Exhaustion: perhaps a morale failure simply incapacitates the combat formation in confusion until it succeeds on a morale check (can't initiate actions, including Fights; can't move as a formation; etc.), and disbanding is caused by failing three morale checks in a row. But so far those kinds of ideas are just in my head, not written down in usable form anywhere and certainly not tested.