Does the size of a settlement matter? Why is it important to grow a settlement? I know in Civ 4 a larger city meant you could work more tiles, but here it seems you can import all the immigrants you want to work tiles, regardless of city size. So what benefit is there to a larger settlement?

Larger settlements mean that your improved buildings remaining fully staffed. Each population in the settlement does require 2 food and since a settlement can only build 1 thing at a time, and has a limit to the number of carpenters it can run, having more than one allows for specialization if you have enough colonists. Too many and your buildings run at less than capacity and you need extra carpenters which takes away from profitable labor.

Thanks for that helpful reply.

it takes a LOT more liberty bells to move a large city, and/or a colony with large cities, to the 50% level than it does if you have more, smaller citites.

The less liberty bells you have to generate, the easier your final war will be, since the european colony you have fealty to builds its army in proportion to the number of LB you are generating.