lurker's comment: Sorry to break in, but I fiercely disagree with Bede's suggestion here:
Red dot is a bad location. It should be on top of the gold hill. Why? Cities on commerce-tiles do not lose any commerce in Despotism. Cities that use commerce tiles, but are not build on them do suffer from the Despo-penalty. And the strategical advantage red dot might have over gold-hill is non-existing (as I can judge from the picture).
Bede is a great teacher, but has some weak points (his strong points outweigh them by a lot). One of them is city-locations.... But we love him just the same