Yes, military santa for pacific islands boosts military morale. It is more reassuring to know that there is a greater military presence in the pacific islands. This, of course, would undoubtedly boost military morale. It would make soldiers and other military personnel feel more inclined to do their jobs and serve their country.
I'm sure that somewhere out there, there are soldiers who are happy that they are part of the "Military Santa" drop over the Pacific Islands. However, the vast vast majority of our soldiers are nowhere near the pacific, and probably don't even know that the drop occurs. They are just trying to get through their time without getting seriously injured.
Who doesn't like getting gifts on Christmas from loved ones? People who getgifts ill be happy that someone is thinking about them and therefore their morale will be up. It will also remind them that they are doing their jobs for the people they love back home. They also won't feel as lonely being away from family.
Members of the military are faced with the idea of shooting and killing people every day, even if they don't have to do it in practice. It is always in the back of their minds, so doing something like helping out with gifts is a good morale booster and helps them forget they might have to hurt others.