I'm in the same conundrum.
I was level 78 when I started Stat grinding in the first path per Ardorius' advice. My morale bar is still in the middle when I start, and I pretty much get at least 4-5 increases per fight, so its not all bad.
My HP is still ridiculosuly low. My highest union has Rush and Blocter and is barely at aorund ,2800-ish. Although it was below 2500 when I started and I've only had time to grind for about 1-1.5 hours. So I'd say its not too bad. Just waiting for the mroeal bar to start lower to go grind in the Ancient Ruins.
Although thats pretty low, I still feel my damage has gone up recently. In my first turn, where my AP is low and only manage to pull off 1 or 2 combat arts, I now average 17-25k per union (more if I get lucky), bringing my first round total damage to around 65-80k. Can't wait to fight someone strong that really let's me use multiple high level arts. Hoping to break the 100k barrier.
What I guess I find interesting is that pretty much since halfway through disk 1, Baulson, David, Blocter and Caedmon kept asking me for Necrotic Metal, whe I was obviously in no position to get it. And now that I'm getting close to it, nobody wants it. Ungrateful bastards!
Also, I've seen some posts here saying that you should give certain weapons you get to certain characters. But I thought, you can't give it to them unless they request it. So, if you have the weapon, do they end up requesting it?