Back when Vanilla Civ IV first came out, there was a number of discussions about too much desert, etc, along with some instructions about how to mod the XML controlling it. The file name is CIV4ClimateInfo.xml, and you can find it in the Firaxis Games\Sid Meier's Civilization 4\Assets\XML\GameInfo folder. I just modded the settings for CLIMATE_TEMPERATE to be a bit more like the settings for CLIMATE_TROPICAL. (I never play anything but temperate.) With these settings, you get less desert, tundra and ice, but they are not eliminated completely by any means:
<Type>CLIMATE_TEMPERATE</Type>
<Description>TXT_KEY_CLIMATE_TEMPERATE</Description>
<iDesertPercentChange>-20</iDesertPercentChange>
<iJungleLatitude>5</iJungleLatitude>
<iHillRange>5</iHillRange>
<iPeakPercent>10</iPeakPercent>
<fSnowLatitudeChange>0.1</fSnowLatitudeChange>
<fTundraLatitudeChange>0.1</fTundraLatitudeChange>
<fGrassLatitudeChange>0.0</fGrassLatitudeChange>
<fDesertBottomLatitudeChange>0.0</fDesertBottomLatitudeChange>
<fDesertTopLatitudeChange>0.0</fDesertTopLatitudeChange>
<fIceLatitude>0.95</fIceLatitude>
<fRandIceLatitude>0.20</fRandIceLatitude>