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The probability of losing is high at maximum difficulty, and 20 morale will only increase the losses, but I don't think it's critical.
I think you're being too optimistic. IMO, at maximum difficulty with Giants, losing is 100%, and with 20 morale, more than half of the battles will be lost. Although, I might be wrong about the latter; we need to see and test it ourselves. PReDS
If you like to sit in your castle and not leave until you've built the Capitol and reached level 7, then good luck to you.
That's exactly what I always do because without building the Capitol, I have nothing to buy an army with to take the Dwarven mines, and without level 7, I can't take the Dwarven mines:smile12: