This is just my opinion, but I'm not overly concerned about Morph in the show.
He wasn't very well established at all, so any changes to him/her aren't really going to be retcons - it's more fleshing the character out than anything else. Morph isn't exactly a blank slate, but IS pretty close. Other than a jokester, there isn't much else there that the audience has seen. Certainly not a sexual identity - has Morph even mentioned finding anyone attractive? Will making the character non-binary be more than checking a diversity box? And by that I mean will they do anything else with the character? If I can describe Morph's entire character by saying "Shapechanger, non-binary" then Disney will have failed them. (for that matter, I shouldn't be able to sum up ANY character by listing their race, gender, or sexuality plus their powers. White/Eyebeams and Black/Lightning don't do either Cyclops or Storm any justice, and Non-Binary/Shapeshifter isn't good enough for Morph either) If they make someone memorable for reasons besides being non-binary, while also making that part of them matter, then they will have succeeded.
Basically, the question I have is "Will it be any good?" Morph being a non-binary character isn't going to change a bad show into a good one, nor will that make a good show bad simply by being there. I might be a straight guy, but I'm not so insecure in my manhood as to feel threatened by the existence of a cartoon character that represents someone other than me. I have actual problems to worry about, like cutting my expenses enough for a couple months to pay for the 2 appliances that broke during the same week.