You're right that with a high muscle mass, it's possible to be in the "morbidly obese" category while not actually being fat or unhealthy.
Exactly. I'm about 205 with a BMI of 31.2 which puts me in the "Obese" category. I work for a health care organization and before the economy died here they used to give us free, voluntary yearly health assessments. Each time my height, weight, cholesterol, etc was recorded and anyone with any risks was contacted by a nurse.
Every year I was contacted by the fitness and consoled over the phone on weight loss and the side effects like stress and depression. So, I'd go to their meeting and they'd kick me out. At the time of my last meeting my lean body mass was about 85%. So, I'm obese on paper and fit in real life. Except since I got married a few months back. I'm up about 10-15 lbs of fat. My wife knows how to cook and I never really cooked before.