No, the bonus does not add up. You notice for [most governments excluding Feudalism and Despotism], the unit support goes up for each new city rank. That is because as your cities get bigger, you can support more units:
For example, Monarch (2.4.8).
A town gets 2, a city is bigger and gets 4, and a metro is the biggest, so it gets 8, not 14.
It was created for large empires (probably on large or huge maps), with poor to ok terrain, which would mean lots of small cities. However, with those small cities would also take a long time to produce units, so I don't use it often, though it could come in handy.
Most people definitely avoid this government unless they wanted a serious challenge like I know there's one succession game which some group of players play as Mongols, Difficulty Demigod, revolt into Feudalism for the rest of a game, and achieving Domination Victory.
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