Morale, generally, is not that huge. I think at most it's something like a 10% bonus to experience gains and it has zero effect on skill gains, parrying/dodging/damage/etc. or non-mental saves.

Edit: Add to that, probably 98% of skills/etc. don't care at all about morale. Stuff that does is usually teamwork stuff like rescue.

This is one unique item that cares a lot about it.

Morale is visible on score; even if you don't understand how to change your morale, I think it's reasonable to expect that you might be smart enough to figure out, "My morale is in the absolute basement and this weapon is really going to town on me. Maybe this isn't the best time for me to spam 10 bashes in and pray."