I'm wondering what you mean by "morals"? Are you trying to apply Christian values to him? Because he's not a Christian, and his belief system/moral code is different, given that he pre-dates Christianity.
Sorry to hear that you weren't amused by his interactions with Oberon. Sometimes humor is like that - everyone is laughing at something and we just don't get the point of the joke.
I think his relationship with Oberon is rather endearing, especially given the fact that he has to conceal what he is and is unable to stay in any one location for a lifetime's length, it's nice for him to have a "friend" who knows who and what he is, who can point out his foibles, and who has foibles of his own. I think anyone who is a pet owner has carried on one-sided conversations with their pet; it's amusing, in this book, to be able to hear what the full conversation would sound like.