I agree the point is to determine if the ranged unit may not really be worth it and I'd say its probably situational.
1) Correct, it's just hills that matter. They add 5

(I think). This is unchanged in the mod.
2) For the following values change from default
(Default >> Mod)
Base City

(8 >> 5) (this means hills could effectively double strength rather than add 25%).
Population

(40 >> 25) (1/4 of population is added, so it adds 5

at size 20 instead of 8).
Unit Divisor (500>> 200)
This means the unit strength is divided by 2 instead of divided by 5. It is not one to one. An archer garrisoned would be +2.5

, and +9.5

(subject to LoS limitations and adjusted by promotions), while a spear would be +5.5 of both (with no limitations or bonuses). Plus 11

but only one time and then it would heal or deal less damage and only right around the city. You could not attack units bombarding or on approach without surrendering the garrison strength bonus.
In default this would be +1 from the archer and +2.2 from the spear, which makes the archer always superior as a choice.
Tech Exponent (2.8 >> 1) This means that tech still increases strength, but not exponentially as you get lots of tech later.
City hit points, and hit points from buildings are increased. A max of +800 for a capital/CS in the mod instead of +125 in vanilla, with all cities +100 more than default. Heal rate is unchanged (20).
I think healing might increase with building defences but I haven't checked and the rate of increase would be the same as in vanilla anyway.
3) Correct. A unit just has to end its turn there. The advantage of ranged units is that they're not required to move to attack and thus if they kill something, there's no micromanagement.
4) The advantage of melee units is the higher

to use. . The disadvantage of using melee units is that without a front line to counter attack or terrain advantages, your ranged units are possibly dead in a prolonged fight. They can keep shooting from inside the walls just fine at full strength while if you use the melee to garrison rather than screen, archers can get hurt and possibly killed depending on positioning and numbers.
I think it's probably close enough in game that it does come down to circumstances and personal preferences. With two large armies squaring off or being outnumbered, it's probably better to hide the ranged units and use melee units to screen the city from attack or finish off enemy units on the flank to go after siege or ranged enemy units. If you expect/need it to last more than a couple turns, it's probably much better to preserve the ranged units and keep shooting every turn. The melee units can usually retreat off to the woods to heal up or maybe sub in for a turn or two to heal if the archer can still shoot from behind the city. They're tougher typically to kill and can often escape to fight another day.
One thing that may alter the equation more decisively with the change to the unit divisor:
Oligarchy. Adding +50% to the ranged city attack cancels out the archer. You'd get +8

from a spear instead of 5.5 and that extra bit of strength could add up over several turns to be valuable.
The other point is naval combat. I'd say you would hide your ranged ships in city and bombard with impunity or turtle back and forth with hunter ships. You may be better off if you have ships around to just use a high strength melee unit to garrison a coastal city in order to deal more damage on defence if they get through the ships.
I do think the mod has dramatically improved the value of non-ranged units as garrisons (at least pre-GG/MG). I don't think it's eliminated the advantages such that it's always preferable, which is fine. I like the options or the tactical flexibility that may be available this way. It's just not obvious that a ranged unit is inferior to me from looking over the numbers.