I'm not sure either.
I'm fairly certain that they didn't intend morale to work the way it is now. They intended something more, but wasn't implemented in time.
Why else would there be a bar to morale from 100-200, and from 200-300..
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Has anyone actually been able to test if say 'Driving Blow' changes at 200 morale?
Morale gores over 100 so that when Your hit will Will breaker you only lose 100 morale and not all of it, so if you morale is 190 you will still have 90 left after being hit by Will breaker. That is one use of it i don't know any other so far definetly not more damage after 200 IMO
all my skill shots reduce my morale back to the retain amount determined by my equip bonuses. willbreaker has never left any morale on enemy bar (as far as I know) but I have heard that bloodstorm may have some type of strange glitch that sometimes gives immunity to calvins willbreaker.
Its too bad the +morale sanctify isn't + 1 to 3 retained morale instead. That would be much more useful (except for Bloodstorm, he would need an exemption) then the standard + morale.