Best. City. Site. Ever.

A good ship chain can get a caravan across half the map in one turn to earn MEGA bonus payments. Then unblock the source and repeat ad nauseum.

It's sort of like having a RR across the water...
 
Do cities on mountains have any defence advantages?
 
Big time - and you can build Walls to make them practically impregnable. They make great border-area death traps that the AI will send countless units to die against. The biggest issue is lack of food for growth - wait till you get into Monarchy and irrigate some Grass. You may need to join a couple more settlers to the city so it has enough workers to overcome the poor city center.
 
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