In actuality he's right though, the morale system is pretty terrible, not because of what he was saying though.
Example: I go into a battle, I have a CR of 55, the enemy has a CR of 64. The battle starts, I'm losing 5 morale per turn because the enemy is more powerful. Three rounds into it, I've done some fancy maneuvering and wiped out half of their force and taken only one or two (or even zero losses).....
....I'm still losing 5 morale per turn.
What? Why? Well, two reasons.
1. I'm not gaining morale for dropping foes that are more powerful. Why not? That Ogre that was in there that ran up and decimated one of my units in one shot got hit by a spell from my champion and shrugged it off, then got dropped by a lucky crit from my Archers. That should have caused a major morale boost as we took down the "big baddy" that everyone was scared of.
2. The CRs of the forces are not changing even though creatures are dying. At the point when I was down to 1 enemy unit and still all of mine (save for the one I lost) I had a CR of 55, and the enemy had a CR of 64. This caused me to continue to lose 5 morale a turn, regardless of the fact that there was only an enemy peasant left.
The Morale system is currently terrible. It needs a lot of work. It has the potential to be something really awesome though, and it could make for a major tug-of-war of Morale between your forces and the enemies' as various units drop or miss or get lucky hits or so on.