Many great ideas here.
Of course some looting would occur. .. affecting moral?
Depending on the general and the soldiers "moral-codex" looting the dead could be seen as a good or bad thing.
Some men would feel that they had deserved looting the fallen. To get trinkets and such to compliment the soldiering pay, or to exchange a weapon that has been rendered useless during fighting.
As said earlier, it would also be interesting if you could get additional choices after battle, that would take extra turns but boost the leader or the army.
""Burring the dead, looting, creating horrific metal-flesh- abominations at the cost of essence."" etc
A known enemy character might fall in the battle, and of course he/she should be able to be looted.. though, it would be fun if there was a X percent chance that such characters would be lost in the pile of dead, taking their special items to the grave.. or maybe they might be looted by bandits and such, ending up on sale in nearby city's.
A large army stationed long enough at a place would attract merchants etc, creating in time small settlements. Staying at one place long enough might also give defensive bonuses due to knowledge of the surroundings, maybe higher percent chance on ambushes and traps.