How does item morale work?

[pigeon]

Hmm, strangely the downloads still don't work for me. Roughly 50 kb will download, and then the download speed just asymptotes towards zero... :-\

And Vicheron, you said that Zerok's underground spikes are good at killing gremlin towers? My underground spikes just do a few hundred damage, not that helpful when up against gremlins with 6k+ health...

And, from the translated manual, about the archmage staff:
"Falls: -2 in army of the hero there were archimagi."

Does that mean the archmage staff only loses morale when there are archmages in your army?! If anything it should be the other way around....