What version of MorphOS are you using exactly? As long as you purchased a keyfile for MorphOS 2.0 or newer, you can update to the latest and greatest release entirely for free.

If you do not own any keyfile yet, you might want to consider upgrading to a better machine. The Pegasos 2 is quite a bit slower than a Mac Mini, Powerbook G4 or PowerMac G5, which is most notable when you do things like browsing the internet.