guess you didn't understand this correctly "I'll have to give up these positions that are usually in mountains and hills next to their cities which I've already, in most cases, fought very hard for."
What I meant by defensive positions was to place units such that you could repel invaders (which might sometimes involve attacking those units) in or near your territory, not fortifying in enemy territory.
Stop building new cities?! My friend, that just isn't an option.
It is an option. People (myself included) have won the space race with just one city. You don't need lots of cities to win.
I always though thw first commandment of civilization has always been stop building cities when there isn't any space left on the map to build them. I may have to build temples in all of my cities, but I can hold of any civ's right now if any one of them were to try an attack and am hopefully on my way to being able to hold off all of them, if need be. Hope for the best but prepare for the worst, right?
There are no "commandments" as such in Civilization, with the exception of "Thou shalt always play one more turn." A commandment is something that you should be doing without thinking about its costs and benefits, and expansion certainly is not one of those things.
The costs and benefits of expansion depend on circumstances, and usually the circumstances suggest that expansion is the best option. If founding a city will only cost the settler/engineer, then it is probably a very good use of those resources. If, however, you have to rush buildings and move in defenders, the city becomes much more expensive and you have to weigh the benefits.
Founding a city (unless it is founded for strategic purposes) is an investment. You have to weigh the costs of building (the settler, any otherwise unnecessary defenders, any necessary structures) and maintaining (structure maintenance costs, the extra unhappiness in your other cities) the city with the expected return (any taxes and science produced, any "spare" units, probable caravan payouts) to be produced. Timeliness of returns is also a large factor, and the fewer spare resources you have, the less time you should allow for returns to come in.
The fact of the matter is that you are having trouble keeping order due to the riot factor, and yet you are still founding cities which must have contentment structures rush built immediately. These new cities are draining your economy, and therefore making it harder to defend your nation.
the only time i've ever used luxuries is when using a democracy or republic, which I've already stated earlier I can't do since I'm at war. Obviously, war weariness is too prominent during a two thousand year long war to ignore.
War weariness can be dealt with, and with much less expense than several black hats in Monarchy.
You're saying I can cut my taxes almost completely and rely on diplomats to stay afloat? And minimizing my taxes to 10%? I'm already losing money at 50%. How can I possibly keep this up?
If your cities are in disorder, they are not producing taxes anyway, so you may be able to reduce the tax rate if you can collect from everywhere. If you need 50% taxes, you probably have too many structures, and should sell some of them off.
If you can, I would be interested in seeing a save of your game. It might give a better idea of what can be done to improve your circumstances.