Okay, I just did some testing. Fear auras have absolutely -ZERO- effect on a unit's morale. Enemy morale gradually went down over the course of the fight, due to losses etc, however there was no direct correlation to the Fear effect whatsoever.
In fact, providence allowed me to take 40 militia against an Onyx Amazon + Nightmares province, and the militia actually held for 3 full rounds against the Nightmares, even with like 20 overlapping Fear effects against them, their morale only dropped from getting cut down like wheat.
Bear in mind, it's possible to gear Fear over 20+ with a D9/10 pretender and items, if they start with Fear. That would basically mean that anything not divine or mindless would pretty much auto route if it got within sight of you, and even 30 morale troops would have trouble attacking through your Awe.
