Current adventurer morphs run into many issues, mostly related to size, camera positions, nano effects, etc., turning them into a penalty instead of an asset. Adventurer morphs also disable the use of light source items such as Floating Torch, Floating Devil, Floating Angel, Tertium Quid, Light Bar. (While morphed, there will be no light effect around the adventurer for any of these items.)
In groups they can be a hindrance in targeting hostiles. In many indoor areas 3rd person cameras can make playing as a morphed character impossible. (Some LE mission rooms are epically heinous.) 1st person cam often suffers from having the morph head in the way... (Personally I don't like AO's 1st person view at all, but that's me.)
Anyway, my suggestion is to change the morphs so that they are anthropomorphic
(Wikipedia) styled instead of full animal forms. Instead of becoming a Sabertooth, Wolf, or Pit Lizzard the morphed character would take on traits of that creater (think warewolfs.)
When "morphed" you would still have a human shape, still be wearing your armor (or, most of it anyway...). The ultimate option would be to have a slightly different but still human posture while morphed, but to save the sanity of the modelers stick with the current breed models. When morphed, the nano would change the head, hands, arms, feet, and back appearance, overriding the armor and/or social tab.
Sabretooth morph would get a cat head, black fur covered hands (with claws!), furry arms, fuzzy cat feet, and an animated tail. Original chest and leg armors would still be visible, completing the werecat appearance. Wolf and Pit Lizard would be similar, but with canine or reptilian appearances.
Leet and Parrot forms are functional as is due to size.