I've made a new set of handicaps, these are actually tuned for the NEXT build rather than the 1/1 build but I'm going to attach them to this post now (I'll upload separately to Sourceforge after the next build is out which should be today or early tomorrow).
AI combat bonus against Animals reduced from 70% to 40% on all levels.
AI combat bonus against barbs reduced from 40% to 25% on all levels.
AI pays 50% for unit upgrades on all levels (vs decreasing to 5% at Deity)
AI pays 50% for unit supply on all levels (vs decreasing to 10% at Deity).
AI pays 80% inflation on all levels (vs decreasing to 20% at Deity)
War Weariness increased (on Deity now 50% War Weariness instead of 20%).
Growth bonuses reduced (on Deity requires 80% to grow instead of 60%).
Prince: Free explore unit removed.
Monarch: Free worker removed.
Emperor: Free worker removed.
Immortal: One less free worker.
Deity: One less free worker.
If you wonder at taking away the free worker - the AI is now very good at training an early worker (including going worker first when appropriate) so it really doesn't need the freebie worker and this will also make early wonders less unattainable for the human.
Other bonuses are left alone, for now anyway. The aim is eliminating the worst exploits of the AI which a human simply cannot do (ie super early wonders, massive unit upgrades, endless war etc).
I don't think these handicap changes are necessarily a good idea. Just saying that will of course impress no one so I'll try to explain what I mean.
First a point of reference.
In civ3 a guy once tried a game at a super deity level where the cost factor of the AI for research, building and growth was reduced to 10%. So AI cities grew every turn, could build buildings in one to three turns and units in one turn, technologies were developed at a frantic pace. Really ridiculous and completely unwinnable, right? Wrong!
The AI had quickly finished building all of the buildings in its cities and then started building units. And it got many units, huge amounts of units. So many units as you've never seen before, each map spot was filled with dozens and dozens of them. And then, its research halted under the massive upkeep costs of these units.
The player playing under these conditions was an accomplished civ3 veteran and knew about all of the tricks and managed to slaughter through the hundreds and thousands of AI units to finally win a conquest (or domination, I forgot) victory.
Now, such a crazy and dramatic result will not be the result of these changes. But on the other hand, the AI will build far more units at deity level than at noble level. The unit upkeep costs are lower at deity level, so it will probably not kill its economy by buildings units. But when the AI reaches a certain point of development, say feudalism, it will have to upgrade its larger number of archers to longbowmen. And there will be no cost reduction compared to noble level for this upgrade. Also, the deity level economy will not be really better when it reaches feudalism than the noble level economy. It will have researched feudalism a lot faster, but when you compare the moment in both games where the AI reaches feudalism, then the economic development of its lands and cities will not be really better at deity level (exception city and civic upkeep costs are lower at deity level resulting in a better economy). So if the deity AI has to upgrade 4 times as many archers to longbowmen, then it will take the deity AI far longer to do so than the noble level economy. I don't think you want an AI opponent that takes longer to upgrade its army at higher difficulty levels.
The larger AI armies of deity level will also move into enemy territory during wars. Because of equal unit supply costs per unit of deity and noble levels, this will result in a situation where wars will slow down the AI far more at deity level than at noble level. Its units abroad will cost the deity level AI a lot more just because it has more units abroad. I don't think you would want a situation where wars slow down the AI more at the higher difficulty levels.
The deity level AI will fight battles with far more units than the noble level AI. As war weariness is linked to losing units and killing units in foreign territory (and some other things of lesser importance), the diety level AI will suffer a lot more war weariness if it goes to war than the noble level AI if you keep the AI war weariness modifiers the same at all difficulty levels.
I personally think that the unit supply cost, the unit upgrade cost and the war weariness modifier should be scaled to the size of AI armies at the various difficulty levels. If not, the large armies of the AI at high difficulty levels will hurt its economy a lot when upgrading or when going to war and the AI will get war weariness a lot sooner at the high difficulty levels.
This means that they could be scaled down somewhat from the extremes seen in the original Warlords 2.08 CIV4HandicapInfo.xml file. However, if the AI bonus on these modifiers doesn't scale with army size, then the AI will suffer at the higher difficulty levels.
I have a neutral opinion about the other changes to the AI handicaps at various difficulty levels.