John Madden (American football announcer) once said something like:
Loosing hurts worse than winning feels good.
I think the same applies to morale points for taking or losing cities,
It looks to me like you lose more moral points when you lose a city than you get for taking a city.
In the Swedish scenario, it seems like your first priority is to keep Magdeburg & Kassel from falling.
Takes a lot to make up for that