The mitigations are more important than morale. So I think you're okay. Had this similar conversations with Vidis yesterday. Sometimes you have to balance survivability with damage output. What is your Physical Mastery?
Morale is fine. And if there is a Capt in the group, you would probably be buffed to 70k -ish. I would up the Physical Mastery if possible. Since we do mostly T1 instances, I wouldn't worry too much. But I like aiming for T2. :)