I can see both sides of the issue, to be honest.
On the one hand, absolutely. He had the chance to come back and force his way in, and said no. It could be possible to infer from Bruno's comments about wanting to see which players would go to war with him, that his attitude would be 'Morgan had his chance.' If he had come back, he may well have been a spark that helped us finish 6th.
On the other hand, he went out on loan last season for a chance to get game time and build a reputation. He came back in January to help a club that was struggling, and then -for whatever reason- spent most of the remaining season on the bench.
If Bruno was to see Morgan staying at Sheff United in January as him not being willing to 'go to war' for the club, I understand it. But also if Morgan didn't want to risk wasting another half-season on the whims of a manager, I understand that, too.