Here is what I'm planning to do:
I'm sticking with my v1.0 franchise. I like the real life contracts, and plan to double or even triple in some cases the offers AI teams make during the offseason. I play just one season per year, so I'll have the time to manually keep contracts in line, and it won't be that difficult.
As for the impact on morale, the vast majority of MLB players are quite content w their salaries. The ones who are brave enough to vocalize their displeasure are top guys, and those contracts are working just fine.
Point being, I don't mind that most players are happy making millions. Why wouldn't they be?
I like the realistic contract amounts, and I'm hopeful SSD can work in some sort of suppy and demand system to handle whichever contract amounts your league has in place moving forward (carryover saves).
Heck, with a system such as that, you could create different eras of baseball.
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