I was surprised that Dave rolled morale separately for each orc. I'd always done it for monsters as a group, and the example of "Failing Morale" in the 2e DMG also treats monster morale as a group thing, not individual:
Example of Morale: As the player characters slash through thick underbrush, they stumble across a band of 10 gnolls gnawing on roasted game birds. Neither group is surprised. An elf in the party shouts in the gnolls' language, "Surrender, you scum of the forest! You haven't a chance and we'll let you keep your miserable hides."
The DM refuses to roll a morale check, since the gnolls don't know if their enemies are strong or weak. Besides, the DM sees possibilities for a nice dramatic fight in this encounter.
Snarling, the gnolls hurl aside their badly cooked birds. The tallest one grunts out in the local tongue, "I think you wrong, tree-thing. We win fight. We take hides!" He hefts a great mace in his hands. The two groups attack. A furious, slashing battle ensues.
Suddenly, the mage of the party cuts loose with a magic missile spell, killing the largest of the gnolls. Now the DM rolls a morale check, both for the magic and the loss of the leader, applying appropriate modifiers.
The DM decides the gnolls are disorganized troops--a hunting party, not a war party. This gives them a base morale of 11. The gnolls have a -4 penalty (chaotic, fighting mages, and more than one check required in the round), giving an adjusted result of 7.
Two 10-sided dice are rolled, resulting in a 3 and a 2, for a total of 5. They pass the morale check, since the number rolled is less than their modified morale, and they decide to keep fighting.
(That example is also interesting because of, "Besides, the DM sees possibilities for a nice dramatic fight in this encounter." So the DM wanting to see a fight is a reason not to check morale? Yeah, that's definitely 2e, game of railroads.
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Rolling for orc morale as a group would have been higher risk with higher reward: if they had failed, the battle was over (unless people kept shooting at the orcs and the orcs decided they had to fight to survive). But if they had made their morale check, the TPK would have been assured. Rolling morale for orcs individually virtually guaranteed that some orcs would flee while others would stay—giving us a chance to survive the encounter, but not ending it.
