Commander Bello said:
This is very much like all this talking about "vassal states". Fine, if some AI players become vassals of your little empire. The same concept would make the human player immediatly start a new game.
But there is no point in having concepts within the game, which are already doomed only to work for the AI, since the human player would never accept to suffer from them.
That only works for penalties that are permanent... or that doom you to lose the game... after all, why not restart the game when you find out in the first turn that you don't have two cattle in your city spot...after all that's a penalty...and something random to boot.
Vassal States, and Surrender, etc. should Only be in if they offer the Player some benefit... Now if you are in a pretty bad position...so bad that you will Never recover.. then you can play for points (this might spur a Union of a smaller power with a weaker one ie Vermont with New York+Virginia) so that the 'Vermont Civ' will always get less points than New York, but might get more than other civs that Didn't join.
Also you Can play to win...in two ways
1. By being the biggest to Fully unify with a Civ that will win in points (if you have the biggest fraction of the biggest chunk of points you will probably win)
2. By not Fully unifying and breaking off later when times are good (Vassal States)
All penalties are good IF
1. You can recover from them
or
2. They are an acceptable cost of a strategy that still lets you win or do well
Also one point on the example, what happened to the US would depend on When it lost Washington.
2000.. probably ok (although that would probably need a Nuclear War)
1920.. probably ok (rallying but..some organizational capacity depending on how well the government transferred)
1870.. possibly Civil War
1850.. probably Civil War
It would also depend on to who the US lost its Capital to, if some states are willing to make peace with with the conquerors then they might easily break off