Jeff Rients on why morale rules are important:
"I probably don’t need to tell you how big a difference that simple rule can make in play. Far fewer fights are to the death. Smart PCs will boldy strike large groups of scaredy-cats, alpha-striking one poor bastard in hopes of spooking the rest. And since 1gp = 1xp, you still get most of your experience even if the DM is a stingy bastard who holds back points on routed (as opposed to killed) foes."
— Jeff Rients, more morale, please