I doubt that getting damage baesed on % of your own morale would be wise, but generally I'd wish a world wide level scaling too. And generally there should not be a FORCED levelscaling because players have mixed feelings about this, also depending on the situation. The most contra point about elvel scaling is that you just loose any progression feeling and new items loose their sense, like it's the case in Elder Scrolls Online. But an OPTION to scale the mobs or your own character for yourself and not other players, would be great.
I just don't like to to fight low big mobs when I'ms around 50 levels above them, and because I like to do all quest areas before going to endgame - but also because of the virtue points - , the leveling phase need SO long (above a year). A great thing would be an wearable item, like the turtles stone, that lets your level - or the level of the enemys around you - scale with your own level or downgrade your own level temporarily to the level of this map, or an levelscaling npc like the landscape diffculty NPC.
This way you can, well rush to max level and do endgame relatively early and still enjoy the leveling and questing content.
And it would not make an ultimat levelscaling like in The Elder Scrolls online, because levels still count and higher level items still count more then older items, but, the enemys just stay green and a challenge.
I don't know how and IF this would work with an item or scaling NPC, but that would give every player more freedom to choose how to level and still keep the succession of the chronology of all leveling areas and lore withouut affecting other players. The thing is just to think about if the scaling would only go downwards, so that you are scaled to lower level mobs, or also scaled up to higher level mobs. Or if only your values are dropped down/increased inside this area.
(I mean, I really love questing and leveling, much more then doing endgame, but its a bit frustrating having to level all areas for 1-2 years to reach the endgame and do dungeons with a new character, since, as I said, doing older quest areas when being almost 100 levels above it, is just not fun and just rushing and power leveling an alt to rach lvl140 by missions and having almost 0 virtue points just to get into the endgame dungeons fast also feels so empty and unpersonal.) I mean, I would even pay for such an stone/NPC/option.
But if such a kind of leveling scaling could be used, the mobs or the player could get any kind of buffs or debuffs, sauron effects or so if you are fighting in a scaled area that is above or under your own level so that it becomes a challenge and feels more unnatural to lead you to the level range of your actual level. Or so.