It needs to be fixed. With a party of 31 and five prisoners, I have -36 morale. That means if I were to get seventy, or a hundred troops, it would be -70 (or -100) morale. This makes having large armies impossible. What you have is good and I won't deny that, but the army morale thing needs to be fixed. Maybe -1 morale for every five troops or something. Right now I have to keep my men in a constant state of battle to keep them happy, and I'll run out of bandits to fight eventually.