So as the map shows, I'm a bit smaller than normal at 1AD: Just 6 cities, although I have a settler just built. Sustainable GPT: 89 bpt at 70%. Oracled Code of Laws, self-researched civil service, and managed to trade to get alphabet, monarchy, and iron working.
I settled 1W on the grassland, ironically for the opposite reason that I gave in my starting post. From the starting screenshot I thought that 1W would be a great production spot. However, I opened the save, and moved the warrior to the hill N with revealed that 1W was also likely to have more grassland tiles for towns. Since I figured that on a highland map, good production sites would be easy to find but commerce sites would be rarer, I settled 1W to make sure my capital could become a good commerce site.
Warrior encircled the immediate area and discovered horses to the NW and SW but no happiness resources.
Since this was raging barbs on an all-land map, I figured that early chariots was a MUST, so settled my 2nd city ASAP by the nearest horses - to the SW - despite the fact that there were no food resources to support that city. I then built 6 chariots and when the barb onslaught came soon afterwards, I was very glad I did: For ages there seemed to be a continuous stream of warriors arriving from all directions. 6 chariots was enough that there were always some fully healed chariots available to fight while the ones that dealt with the previous turn's attacks recovered
And the experience gained meant that I was able to get several +1-visibility promoted chariots after a while to go out exploring with!
I was seriously worried about happiness - no visible happy resources in the immediate area - and that was what made me decide to Oracle code of laws - to get the happiness from a religion.
So, between diverting resources to the Oracle, settling a 2nd city with no food, and having to fend off the barbarian armies, I think that explains the small size of my civ. Once the game is finished I may try replaying with a couple of alternative strategies - perhaps see if building the great wall first is better. But overall, given the circumstances of the game, I'm happy so far...