Of course setting the value to no barbarians does prevent the appearance of goody huts.
Just a thought: Does the setting actually increase the number of barbarian encampents or just how likely those encampents are to send out warriors and have an uprising? I seem to think it is this way, and if it is, then that is another reason why changing the barbarian level has no effect on number of goody huts. As the actual number of encampents (barbarian or goody hut) would be independent of the level.