In all the strategy games I played morale (happiness) was one of the most important things in the game, affecting everything else. So i kept it at 100% on all my planets in GalCiv III too. But when I look at it, it really doesn't do much. A small percentage bonus on 0.1 is neglectable. And you are far better of builing a growth / influence building if that is wat you really need. I naturraly assumed unhappy people would produce less, but when I destoyed all morale buildings on my largest planet in an old save, nothing happened to it. So am I missing something again?