Goku just needed to punch him there because Moro was falling apart. It's the same reason Moro just died when that happened rather than just being weakened.
Because it's specifically noted in dialogue that Merus was sealing them so he couldn't regenerate? You might not like it, but it's plainly stated. Anyway, he recovered the arm that Merus just cut off (leaving it with the crystal) rather than regenerating any of the crystals that Merus broke. And he had even regenerated that arm after it was cut, so it's clear he wasn't limited in the same way he was regarding the broken/sealed crystals.
Yes, the part about the Grand Kai and Moro's original sealing is fairly vague, unlike the Merus battle. Regarding how strong Grand Supreme Kai was originally, it's all vague too since Moro's own power also doesn't have a clear level due to being mostly based on his energy absorption. Still, just like with the SSB situation before, keep in mind that whatever power Goku received just needed to power up his base, then SS/UI would add extra power on top of that. The power by itself doesn't need to be SS/UI level (although the clear implication with Uub's power here is that it surpassed the remaining powers of Vegeta and the others put together).
Except that wasn't really implied that Goku could do it because Moro was unstable. Only 'break the gem'. And honestly, Moro shouldn't have just died, but that is another matter.
The dialog can say all it wants Merus sealed Moro, but from all the panels all Merus did was break the gems using his staff and fist. There was nothing special about what he did outside of the text, which is an issue I always had with that section.
Goku had to do more than just power-up to UI. He had enough power to break Moro's hold (who was able to locked in a fully power UI Goku to being with), make an energy giant that pinned down Moro, and be strong enough to break the gem. Keep in mind, Moro has Merus' power, which is why Vegeta couldn't just fly over there and break the gem himself. So even if we say Goku only had 1/3 of his original power, that is still a lot and nothing suggests the Grand Supreme Kai even in his prime was that strong since him and South Supreme Kai got beating by a far weaker Moro. We actually do know Moro was weaker compared to UI Moro since he appeared to be a fairly old man in the flashback and not his younger self.