The manual is right in this case. The quote was incomplete and thus misleading:
Quote:
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The standard ability increases the moral of friendly units in the area of effect of the standard. The bonus denotes the number of squares of effect, so a Standard +8 raises the morale of units by 1 within an 8-square area of effect. There are no Standards +0, like there is with Fear. Each full +10 increases the morale-boosting effect by +1, so a Standard +15 gives +2 morale to all units in a 15-square area around the standard. Morale boosted by standards will be lowered by 1 per round and can never exceed +5.
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So, +1 is the minimum boost and every +10 area also adds +1 to the boost.
The boost only going to 1 unit/square/turn does seem to be bugged. It might be interesting to try a similar experiment with 1 very strong (+50) Standard instead of multiple weaker ones.