I ran a quick test by hugging with 12x70-75 morale units vs. 12x80-90 morale units in Road to Leningrad. The first group took 1900-2400 casualties a turn, the second 1500-1800. I don't think you take morale hit for attrition, so is it worth maintaining early game front lines with minimal hugging, using only higher morale units?
Case in point, I am sieging Odessa next turn but saved probably 400 men simply by not being next to the city this turn. Moving up one space next turn doesn't really matter to me. Extrapolate this across the entire front of 200 divisions (early game, when Germans are chasing) and we save 5,000-10,000 casualties per turn at the expense of ideally 1 MP.
