These are some very interesting questions.... I think there is a difference between Joy/bliss vs happiness. Living with in Anand (or so my own interpretation is), is like living in constant contentment with whatever the situation is around you. Non-judgement and accepting it as joyous, so all situations look the same. Happiness, can be situational as a result of something causing something else, this to me would fall into the realm of duality and Anand beyond that?
I dont think moving out duality and acting morally are at odds with each other, I think because we are tied to this world like you said you still do what is required of you but while accepting and being content with it all under the same light. There's this story I heard a while back about a zen master that I think fits with this:
A beautiful girl in the village was pregnant. Her angry parents demanded to know who was the father. At first resistant to confess, the anxious and embarrassed girl finally pointed to Hakuin, the Zen master whom everyone previously revered for living such a pure life.
When the outraged parents confronted the Zen master with their daughter's accusation, he simply replied "Is that so?"
When the child was born, the parents brought it to the Hakuin, who now was viewed as a pariah by the whole village. They demanded that he take care of the child since it was his responsibility. "Is that so?" Hakuin said calmly as he accepted the child.
For many months he took very good care of the child until the daughter could no longer withstand the lie she had told. She confessed that the real father was a young man in the village whom she had tried to protect. The parents immediately went to Hakuin to see if he would return the baby. With profuse apologies they explained what had happened. "Is that so?" Hakuin said as he handed them the child.
