For morale and fatigue, yes.
as to it as a main feature: no. Perhaps an optional add-on? I personally think the player to have choice here--especially as I had this idea the other day (for my mod, but I'll share it here):
what about hiding all the information, and leave it to the player's wits and experience to decide? historically, a general wouldn't magically know if an enemy unit (or his own) were wavering/routing, save by great experience/talent.
While I don't propose this idea of mine as a default--only another option--it is something to consider, for those seeking a challenge.