I have strong thoughts on the matter, and tackled it in my WWGD AI balance mod. I will split up my thoughts into sub-issues:
Wording: I really dislike mentions of "game" or "winning". If they were replaced by "Competing National Interests" then not only would it be much easier to swallow, it would actually make it a fun mechanic.
Victory Types should be different: I absolutely think Conquest and Science competing AIs should view others going the same route as rivals. HOWEVER, I think Culture and Diplomacy strategies should view those going similar routes as allies. As of right now, this separation is NOT possible through modding.
Those are some good ideas Sneaks, they could be implemented without changing the game too much, so they may be very possible, maybe one of the expansion packs will tackle it if they still are'nt possible through modding, sometime in the future.