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I know Morale was made not to do anything in the capped Frontlines back when it was a a PVP superstat that governed everything. Now that it's an item level increase, is this still the case? Or would, say, level 70 PVP gear functionally be level 88 in a level 80 zone?
They addressed this when they changed Morale.
Quote:
The effects of the PvP property Morale have been adjusted.
During Frontline or Wolves’ Den matches, Morale has been changed from a property affecting damage dealt and received into one that increases the item level of PvP gear. The increased item level during PvP matches will be the sum of the initial item level and the Morale rating.
Example: If a player equips item level 70 PvP gear that grants a Morale bonus of 15, the item level of that gear will be increased to 85 during PvP battles. If, however, a player joins a Frontline match that is synced at item level 80, the same level 70 equipment would only increase by 10 levels to meet the level cap.