That said, even without a full conquest, that's still a massive PoD. You would get a very friendly Morocco AND a surviving Portugal.
I'm researching this exact thing for my podcast right now, and the death of Sebastian is, to me, intimately tied to the rise of the VoC.
By keeping him alive, you're preventing the Union of Crowns, and thus the big incentive for the Dutch to go to Asia. Portugal was a long time ally, they would probably keep working together, strengthening the Estado da India instead of weakening it even more.
Since Morocco is now an ally, that even means you'll have less fidalgos dying stupidly on Moroccan fields. I'm not sure you'd see Morocco really benefitting from the Portuguese empire, but it'd be interesting to see.
You might just end up with factories in major Moroccan ports and likewise, strong ties to Morocco in Dutch and Portuguese ports