da_Vinci
Gypsy Prince
You get the use of the fish and the extra hammer from the plains-hill, so in the short run you have a reasonable production/poprushing city without having to build a worker first and later with forests to chop too. I notice it also gives you another guaranteed high-ish food spot north of the ivory that you can also use for some poprushing. The thinking involved there is looking a bit like trying-to-use-every-resource, which again is iffy logic for long-haul games but I can see some logic in the short term if you want a quick high-production civ (eg. for conquest).
Am I getting warm?
Actually quite hot.

Finishing GOTM 13 is now bogged down in a video driver problem,

I have been thinking about tempo, as chess players use the term (losing or gaining a move's worth of time). For those not familiar with this idea, it is described well here: http://en.wikipedia.org/wiki/Tempo_(chess)
The cost of moving the settler is some number of turns, in this case two lost getting to the hill. What is lost doing that? You lose two turns of production of your entire empire. The key is that you do not lose the production of turns one and two, you lose the last two turns of your empire's production.
Example: Compare settling in place, with waiting two turns to settle in place, and then do everything the same. At turn 50, the waiting approach is at the same production as turn 48 of the settle in place, so you have lost the net production (net food + hammers + commerce) of turns 49 and 50 of the settle in place strategy. Think how big this is at turn 400!

So why ever not settle in place? This gets to "city power", or the net production that a city makes. City power is net food (made - eaten) + hammers + commerce (or maybe commerce minus maintenance?). And perhaps with a granary, net food should be doubled as it has twice the effect? But you get the idea.
If moving to settle gets you a higher city power right away or in the near future, that extra city power is a production accelerator, and that can make up for the tempo lost to the settler moves.
So I logged the first 50 turns in the Svelte test map either settling in place, or on the ivory (both turn 0) or on the hill (turn 2). See attached. Production caught up on the hill by virtue of the extra food from the fish. Getting that first WB out in 15 turn instead of 23 made the extra hammer (hill or ivory) in the capital tile well worth it for a fast start. Expected to move the palace to a more central location later.
The hill, with all of its available food, makes a good "whipping post". Hammer poor, grow the pop and then whip to build what the city needs. To me, whipping is like the commodities exchange, where I can trade 1 food for 2 or 3 hammers (depending on city size) after granary.
At the outset, we have no idea how much or little land we have to work with, so after proving that the hill was just as good as the other two known options, settling there kept options open in case this was a tiny island.
Probably old hat to the experienced folks, but might be a useful insight for some newer members.
dV