The basic elements would be, first, whether the city actually existed at the time when the resource was first hooked up. Then size of the city and the actual distance from the resource.
The first is incredibly non-transparent to the player. You should be able to see everything easily from looking at the game as it currently is. Having a current impact depend on the state of the world that existed in the past (that has no current visible indicator anywhere) is a terrible idea.
The second and third: how do they interact?
Size isn't great; you might have a big city with lots of happiness infrastructure where the resource is useless, and some other smaller city elsewhere without the infrastructure that could really use it.
Distance isn't great; do you count ocean tiles? What about ties?
Read the first page of the thread, lots of problems with any allocation mechanism.
Luxury resources are already somewhat weak, in that they only have an impact on your cities that are at happy cap. Reducing their benefit so that they only benefit a few of your cities (potentially none of which might be at happy cap) will make them very weak.
I'm not suggesting a strict chronological order, only that new cities don't take away a resource from one that already has one simply because it happens to be closer to the resource.
You are suggesting a strict chronological order; you're suggesting that only the early cities you build will be able to access the resource, and that cities you settle or acquire later will be get resource access.
but there's no reason why a safeguard can't be put into place so that when the resource is rebuilt that it goes back to the same cities again.
Do the resource access of a particular resource is set forever and ever when the resource is first connected? How is that logical or transparent? Player's shouldn't have to remember the entire micro-history of the game.
With 1 unit per tile, we're not going to need as many units
I severely doubt that a larger army will ever be not useful.
I'd say you're not going to be able to *build* as many units because of higher unit cost, but that isn't quite the same thing, and neither reduce the point that you will have a tendency to hoard resources. Either you'll want to hoard the resources and not trade them, or you won't want the extra resources and so the whole cap system becomes irrelevant. Either way has an issue.
more confusing than treating them all the same way.
How are you treating them the same way if strategic resources provide a constant amount that can be used anywhere, and luxury goods provide an amount that can only be used in particular cities depending on the order in which you found your cities, the timing of when you first connect the resource, the relative size of your cities or the
If you absolutely had to make luxury goods limited, the easiest way to allocate them would be to have them automatically allocated to your cities with the most unhappy citizens (ie net unhappy faces - happy faces).