OTAKUjbski,
I don't want to make too much of a debate over the differences in our city sites, especially since there's not much that separates them, but sometimes a marginal advantage gained here and there can make a difference. So I'll just respond to a couple of points:
That's funny ... this is the opposite of the Silver city: my site's focused more on short term than long term potential. I also considered this placement for the Incense. If my Red Sheep/Corn city is settled, then my White is in a better position to pick it up with a border pop soon. In your placement, the Magenta city picks up Incense.
I don't know if I really see a short term benefit from your city site. The oasis will provide another positive food tile, but it doesn't seem that it will make much difference in the productivity of the city. Two farmed FPs plus the sheep pasture provide +8

. The oasis makes it +9. The additional

won't support another specialist. And if you're thinking about using the excess food to support cottages then I think my site offers more cottageable terrain (even with one less food).
Also my city site has several quality tiles adjacent so it doesn't really need a border expansion. It can afford to wait for Islam to spread, regardless of how long it takes. Your site needs the border expansion, so you're either going to have to keep your fingers crossed and hope for quick Islam spread or whip a monument.
Although I think we agree that either site is going to be pretty mediocre so it shouldn't be a high priority.
Not necessarily. In my placement, I'm factoring in that Mecca is a very strict Commerce City maturing as many Cottages as it can in preparation for Bureaucracy. This means all of its hills are subject to overlap for usage in nearby cities.
Placing Dark Magenta (Wheat/Crab/Pig) on the hill has 5 'benefits' over settling 1E of that hill north of the Crab:
- Innate +1P from being settled on a Plains Hill.
- Still has a Plains Hill in its BFC: Mecca's Plains Hill -- which will be unworked by the Commerce-hungry Mecca the majority of the time.
- Shares 3 Riverside Grassland tiles with Mecca. While Mecca is working and maturing other Cottages, Dark Magenta can mature these three while still maintaining sufficient +Food for specialists.
- Less water; more Land. 1N of Crab has 2 extra Oceans & Coasts and a Peak at the expense of the overlap (see above) and a Grassland Forest.
- Lower distance maintenance. It's probably minor minor, but 1 tile closer here means 1 tile farther for another city (I'm thinking primarily of the "Forward Observer").
I'm not quite as willing as you to have the capital give up a high

tile. I think city specialization is a bit over-rated (and judging from previous ALCs I would say Sisiutil puts even less emphasis on it than I do). I find the capital needs to be a workhorse city, which usually means being strong in

,

and

. I don't know if the production of the two northern cities is going to be enough to handle all military needs. That could force Mecca into a secondary production city role in addition to being a commerce city. Keep in mind that Bureaucracy also provides a bonus to

so the hill is effectively worth more hammers if it's worked by Mecca.
With that being said I think founding on the hill could be a good idea, depending on some decisions as to how to move forward. In addition to the points you made there is one other advantage that you didn't mention (at least not explicitly):
There seems to be widespread agreement that this map, as well as Saladin's UB and spiritual trait, makes an SE very attractive. Of course that makes Pyramids a very useful wonder. With no stone or Industrious bonus the only way to have a chance of getting it built is by massive chopping.
Looking at the map the only place there are lots of forests is SE of Mecca. Founding on the hill provides 10 forests in the fat cross (compared to only 6 by settling E of the hill). With several

/turn from the city tile, Mecca's hill and the wheat this city could finish Pyramids in about 50 turns if all the forests are chopped in that time.
Louis might beat us to it, but maybe the presence of Marble in his territory will steer him towards Oracle and ToA. Of course there might be another Industrious civ out there, or a civ might get stone hooked up early. But it might be worth the risk. So if Sisiutil decides to try then founding on the hill is definitely the right choice.