I love bureaucratic games like this that explore the silent terror of paper pushing. Well done! I did notice that "Terrified" seems to make soldiers immune to exhaustion.
I've designed a system like yours before -- though yours is far more elegant! -- and I made a distinction between an individual's MORALE and their EFFICIENCY. Morale measures something like "Terrified", and in your game would be a soldier's chance of committing actions that would lead to court martial. Efficiency is more akin to the tiredness mechanic.
You could make an interesting game out of the balance of these in each individual soldier, and random events could have an effect on them (e.g. successfully repelling a raid gives a boost to Morale, wet weather saps Efficiency across the board -- get imaginative with it!). You have the bones there for it, just a matter of iteration.
Over all, this is an excellent game. I'd love to play it again once you've really put a gleaming shine on it!
