I'll chip in on the stress conversation and say that it freaks me the heck out.
I feel like it is designed to negate a certain playstyle (Camping). As such, its really an arbitrary decision to force an aggressive playstyle on the player.
I realize it will have little to no impact on some players, but others (like myself) were blown away at how devastatingly hard the mod could be even before extended and the new combat stress mechanic. Its really a matter of playstyles. I had to adapt/change mine to gain any ground, and even with my adaptations, I think that I would still have squad panics with this new mechanic. So by forcing playstyles, it kind of feels to me like you are narrowing the game down into only certain solutions.... more like a puzzle game. Once you figure out the solution, the game gets easy, but you are punished otherwise. That goes against what I appreciate about many well designed games (OpenXcom, Jagged Alliance 2, Civ, etc) that allow you multiple paths to success.
Anyway, thats just my two cents on Game Design.
And yeah, if morale is going to be that much bigger of a factor, ensure that the antidotes are readilly available... booze, etc, and maybe quicker to use.