Thanks for posting Ahriman, I missed you
I assume the AI will somehow know not to waste money on befriending it?
Well, currently I have no idea how to accomplish it, but once I get my hands on the DLL... But still there will be some benefits of befriending them, often in the vanilla game getting a resource is more important than the bonuses that city-states provide. Also, perhaps the AI is less willing to befriend hostile minor civs (although I currently don't know how to make them always hostile).
I guess I worry a bit though that the only role they'll have will be to take up space; you'd probably be better off warring against a major civ, which weakens a rival, rather than a CS. Could there be some way to make conquering them rewarding - maybe they have horded loot, or conquering them gives you some kind of extra trait, like a Tough Guy bonus that gives a bonus vs other orcs, or monsters, or barbarians?
Good idea, I think I'll give them a wonder in their capital that gives some benefits to the one who conquers them...
There is something I should tell you all: I was a Gods & Kings beta-tester, so I had early access to it, and could start working on a G&K-compatible version of the mod earlier. There are still lots of things to do though, so don't expect a release this month.
(If you own the expansion, you can find me in the credits under "Frankenstein Test Group". Unfortunately, according to the NDA I can't tell you any details about my involvement, so don't ask me about it

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I attached a screenshot showing the new water features that I added to the game: Reef and Kelp (using the Stone and Dye resource graphics). They give yield bonuses (Reef +1 production, Kelp +1 food), and slow down ships moving through them (Atoll costs 2 movement points, Kelp 3 and Reef 4). I'm also going to add some defensive bonuses to them, but last time I tried it didn't seem to work, so perhaps the DLL is required for this as well.