One thing I found interesting about Warhammer Fantasy Roleplay 2E was that, if you at 0 or below hit points, you didn't drop or anything like that. But any hit now is a critical hit which will likely hit or kill you.I see morale as part of the hit point pool. Hit points represent damage, fatigue, luck and morale (which is why some fear effects do psychic damage).
A monster reduced to zero hit points may merely be out of morale. Or it may be mortally wounded. Or a dozen other things, all abtsracted by that nebulous pool of "hit points".
I agree, as for the rules not moddelling actual injuries; well you could use the diease rules and permanent/temporary loss of healing surges. Loss of limbs, eyes and so forth are more complicated and would require reworking stats ans skills and more serious injuries than that are effective end to an adverturing career. Unless there are magical means of regenerating missing bits.snip
If I wanted to make hit points in D&D more "realistic", I would probably use bloodied and 0 hit points as such state. The first time bloodied is the first time you are wounded - albeit slightly only then. Anytime you are dropped to 0 hit points or less, you take serious wounds. In a way that's already what the game suggests to happen, but the rules don't go so far as modelling actual injuries with long-term penalties.
I'm not interested in a return to earlier edition morale checks. I much prefer to resolve such issues based on the needs of the story or encounter.
I think the point is that rolling for morale can lead to implausible results. No set of rules, combined with a random die roll, is going to properly reflect what would or would not make a group of warriors turn and run -- at least not without a few glaringly bad corner cases.Sure, when you are following a story morale checks aren't particularly necessary, as the DM keeps the chain of events in hand to try and build the action towards a crescendo.
But what about sandbox or dungeon-linked campaigns that have no overarching story arc? Surely, there could be a big role for morale checks to play in those types of campaigns?

(Dungeons & Dragons)
Rulebook featuring "high magic" options, including a host of new spells.