I didn't realize how close we were to being able to switch to a Republic until I saw the thread on that. I think that our solution to corruption and waste lies in our government choice, and this city should help prepare for that switch. It already has a temple, so with its high production potential it would be a good idea to build a crusader and take care of the Roman and possibly Zulu threats, so we don't have to worry about war under our Republic. After that we could build a library to reap the benefits of increased trade.
So switch my vote from Other (courthouse) to Crusader.
About that phalanx movement being the president's choice, I think that since the governor's job is to watch his cities then it's his job to inform the president of such things. When the governor sends in his PM to the president with the results of his polls, he should also mention things like troop movement and support, changing which squares are worked in the city radius, directing the settlers that are supported from his cities, etc. The idea behind giving the governors the saved games was that the president can't keep track of all the little things in every city, so the governor would have to do it.