I've found another bug, don't know if its actually a bug, or a game feature or exploit.
When in the basic civic mode, 1st civic where you CAN'T settler more than 3 cities (haven't tried to test that limit as yet), you can conquer more than the 3 city limit, and not lose others, be penalized, etc.
So basically, you settle 3 cities, then run rampant conquering more cities. These new cites are fully productive, all buildings are available, and provide trade routes.
Don't know if this was intention, an over sight, or its an exploit to a point (you'll go broke trying to win conquest this way) I haven't gotten Beta 6, so if been fixed, sorry. Waiting 2 day's for download allowance to re-set.
We modded this mechanic in C2C in two ways:
1) It's totally optional
2) We support (and this is the default setting) 'soft' city limits as well as the AND 'hard' limits. With soft limits you can found as many as you like, but each one over the civic 'maximum' gives extra unhappiness in all cites (the amount per extra city is also defined in the cvic)
AI was also tweaked in C2C to understand this better