In my opinion some of the things that lift morale up could be seen in the mod. Based on other mods:
- Buying ale for your army in taverns (double for dwarves, perhaps?)
- Passive morale gain from just traveling (or resting?) while the player or their companions have Entertain skill trained (no need to "play in town" and it'd make companion bards useful).
And some more in-depth thing:
Perhaps adding some stuff like expanding the choice of "what to do with the prisoners" would be good?
- Release them: Goodies are happy.
- Execute them: Baddies are happy.
- Imprison them: No change.
- Cannibalize then: Baddies are HAPPY, goodies are MAD. (Maybe a possibility for a take-out?
You take the prisoners as an item in inventory (good morale boosting food type) and slowly eat them along your way, but everyday goodies are losing morale). Losing honour.
- Help them out: You are a noble soul and you not only release your prisoners, but you give them some food and water (if possible to code - it should drain 1 unit of random food per helped prisoner. If not - then perhaps it'd take just a random stack of food as a whole). Goodies are in heavens when you do that, baddies are raging. Gain honour.
The above would have both roleplay value and would be a nice addition to help balance your morale.