I think a reason to improvements of palace is growing civilization :)
The most important seems to be the rising number of citizens. Perhaps also development of Advances - but i'm not sure of that.
At the beginning build 5-6 cities. Then lots of chariots. Use them to take over the continent and build how many cities you like. Then build railroads between cities, change government to democracy and have few 2-movement units ready to defense the nation. Things without which i don't think you...
Despotism/communism until development of railroad and most cities connected and continent clear of enemies. Then democracy and few units with min. 2 point of movements are enough to protect the continent, leaving home city only when enemy land. If you are going to conquer another continent just...
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