Just because a guy was highly rated out of high school doesn't make him a great QB. LC says all the time the ratings are usually meaningless. From what I've seen of the guy, nothing has left me impressed. Remember, he was 3rd string this year at Michigan behind a Sophomore and a transfer QB who wasn't that great either.
And to be fully honest, I don't know if this kid has taken a meaningful snap since that fateful day he suffered a concussion and Brady Hoke put him back in the game. What's he gonna be like?
I do think that the ratings are probably more accurate in the 3-5 star range than they are in the 2-star range. The recruiting services make their money from the top end, so that's where they put their resources. They pay very little attention at the bottom, so it's not surprising that their ratings have little value.
That said, I don't disagree with what you have said. He was a third string QB at Michigan, and in a worst case scenario, he'd be a third string QB at Ohio. On the other hand, for this one particular year, even that wouldn't be bad. Ohio's depth at QB for next year is non-existent, so one more body would be a useful addition.
What about the best-case scenario? Maybe he's been demotivated since his injury, and coming into a new situation might inspire him to try, for that one year, to be the QB he always expected to be? He might come in and have a great year. Certainly Heitzman and Strobel didn't put up spectacular numbers at Michigan, but they were solid additions at Ohio. The possibility is that Morris could do the same.
I'd be in favor of this transfer. The risk is low, only a one-time, one-year scholarship, and the potential reward is high. Even the worst case scenario, another QB on the bench to help allow Keszei to redshirt, isn't a bad use of a scholarship.