Think that is a very good move for him. Championship would have been a better level, but theres every chance he'd have been a bit part player in that league. Hopefully he will be an important first team player for them and get a full season of competitive mens football, which is exactly what he needs.
Whether loaning our youngsters to League One clubs is the right way to develop them will only really be known when we see what kind of role Toffolo and Thompson have this season. If neither are allowed anywhere near the first team despite a full season in League One, then I would question the point. We're trying to develop first team players at Premier League level, so what we do needs to bring them to a point we feel they can compete with more established pros. If not then really, what is the point? Players are rarely sold down the pyramid for much money.
I wonder why Coventry was the choice and not Hamilton. After Morris went I wondered if we might see this happen with quite a few players. League One and bulk of Scots Prem are probably similar level, so could just be that Hamilton weren't interested. If that's the case then it makes the Morris move more exciting, as in they think he'll genuinely offer them something, which fits with their managers comments.