There's some good and bad to this. One good thing is it gives you more room to expand and create a large empire. Civ5 sometimes annoyed me because I would have a city state right in the middle of my empire. Historically this may be more accurate when you think of areas that comprised of what we may think of city states (like Italy for many years). On the bad side from a gameplay perspective this is not ideal. I'm having a very difficult time meeting city states now. Only had 2 on my continent in my current game, and 1 was conquered, the other is extremely far away.