Well, instead of Morale giving you a competitive advantage, maybe have it increase the rewards you receive instead?
For example, have each point of morale increase the rewards received in PVP by 1%. So if you would normally receive 20 Esoterics, 10 Lore and 300 Wolf Marks, someone with 100 morale would get 40 Eso, 20 Lore and 600 Wolf Marks.