I think you are spot on why Ming could not defeat the Manchus and why the Ming soldiers were demoralized. In the last three decades of Ming dynasty, most of the standing armies of Ming were not well paid, fed, equipped and trained. The empire was in constant financial crisis due to disfunctional government and natural disasters.Morale really matters in pre industrial warfare, far more than now. My understanding is that the Ming army was demoralized after fighting peasant uprisings for 10+ years, pay not keeping up with inflation since Wanli printed money and debased silver to pay for expedition to Korea, loss of trade with Spanish, Dutch and Portuguese galleons due to rise of North America and Britain, etc.
But it was not the Wanli (万历皇帝) who printed money on paper. It was the first Ming Emperor Zhu Yuanzhang (朱元璋), aka Hongwu (洪武皇帝), who issued the paper notes, known as 大明宝钞 in history. The system had serious flaws in design. The paper notes were not well received in practice. The issuing last only 5 years. The issued paper notes depreciated quickly to being worthless and exit from circulation well before Wanli inherited the throne from his father. By then silver bars (银锭) had already been widely accepted as the most common payment method, in addition to copper coins.
The trade with Europeans, and the large silver inflow surplus as a result, continued into Qing. The Qing empire had trade surplus until the first Opium War or even later.