I have more thoughts on it, combat.Morale of units doesnot matter,and it is crucial in warfare. In order to fight soldier must be willing to sacrifice his most valuable possession,his own life. If your unit was in trench for two days under bombardment, and without food, morale will be low. Such unit is not likely to fight good. It's more likely it will flee or even surrender. Combat in Civ does not reflect this. Also, indoctrination of people for war is very important, no matter whether your enemies are filthy barbarians, heathens or is ruthless dictator - it is the same thing. Soldier can't kill someone if he can think of enemy's chindren and wife, enemy has to be something like an animal in soldier's mind.
Why? imagine your platoon is under fire, surely you'll think some animal is shooting at you and trying to kill you, but there are leaflets, radio broadcasts by the enemy, that you should surrender and not support "flawed views of your government", it is combat inside every man on the battlefield. You must hate enemy enough to fight.