We've had a discussion about suppression fire in the past. I believe it's a concept that translates very poorly to a turn based game like this. The point of suppression fire is not that it hits the enemy, but rather that it hits close to the enemy, preventing them from moving and staying behind cover. Because in a TBS game there is no simultaneous movement, shooting next to an enemy actor is fairly useless since it won't move anyway, and similarly on the next turn when they DO move, your own troops remain where they are. Plus, it's not trivial to decide what constitutes suppression fire and on whom in terms of the game mechanics.
As for implementing fire that affects morale or TUs on hit, I don't think anyone would use it. If you can hit them, might as well kill them.
