Digress said:
The False Horrors fly in and then get trampled by elephants with minus something (-5 to -1) morale.
Yes.
Don't use false horrors against things that can trample them. Or armies with lots of arrows, as they ignore defense and can mass thier attacks easily to break ethereal.
In my example I didn't really need them (the false horrors) to stick around very long - kept spamming them hoping to generate more morale checks. At least one a Horror - assuming that morale checks are carried out BEFORE melee combat.
I guess the Strategoi standards are stacking and helping in the battles I lost.
Should you see the effects of the standards in the battle replay ? The units further away from the standards seem to have the worst morale but even the units near the standards have pretty poor morale.