No, MorphOS doesn't somethimg strange to DH0. It is just a partitition formated with Mac HFS that usually doesn't get mounted on MorphOS boot process, but can manually mounted whenever you like.
thing that you cannot boot from CD anymore is a bit strange though. What happens when you don't boot from CD, but just start the computer manually, can you access the firmare (alt-cmd-o-f)?
Press "c" to boot off optical drive.