I agree that player room doesn't have a significant role in the game, but to be honest i never figured out what should it be.
However, increasing the condition points to a higher value than 3% each day will be mosly good for big teams: If my players could recover 35% each week (instead of 21%, as now happens) i could play all league matches , all friendly/cup matches, all custom cup matches and all WCC matches without effort (they could also play for the NT and nothing would happen too) , big teams wouldn't need backup players anymore.
The morale thing is not that bad i think, but maybe higher levels should decrease the chance to receive morale drops until you lose a couple of matches. Morale boost should be guaranteed after good performances IMO, but i understand that when a weak team loses against a big team, their morale drops, and that doesn't happen in real life mostly, i mean small teams usually plays to not lose against big teams but they understand that losing against them will probably happen, but they also know that their competition is not against big teams so losing against a stronger team wouldn't affect them mostly (unless they lose really badly).