As it is option 4 here it is broken because that way R1 will not only be punished for his mistake but he will gain IMO advantage of this situation.
Oh ... I did not realize before that the point of the game was to dole out appropriate punishment ...

I thought that primarily this was an introduction to pitboss for a large number of the GK.
That being said ...
I just want to say that We(tp) must decide what to demand (if we decide to not kill R1) for somekind of peace deal.
This point has merit, especially since the parallel second game is viable. If everyone is willing to play second game (or at least a reasonable number), then the question really is how to resolve the first game. For that options are:
1. Kill R1, play on
2. Spare R1, with simple compensation (he delays worker moves as if he built warrior when he saw warrior coming).
3. Spare R1, with whatever draconian compensation hw is dreaming up ...
4. End the game, declare tp/hw victors
(having removed the "reward R1" option that hw doen't like ...

)
And it does make sense that tp/hw get to decide.
As to oyzar's comment that 4v4 seem strange, I have experience with that ...
My first pitboss was a 4v4v4v4 inland sea, I was invited by g_storrow (some will remember him as a GK briefly) to take over a civ.
The game quickly became a 2v2 on our western front (I had the border), and a 2v2 on our northern front (we had SE corner). So from a coordination point of view, didn't have to have long discussions each turn among four, just among 2 sets of two. Did need all four to agree on research ...
Also, the team on my west border had killed off one civ early ... which made their victory inevitable, since I could not talk our northern neighbor into stopping attacks on us and teaming to take down the giant soon enough.
While I was able to hold the west border (barely) most of the game, the big team rolled up the rest of the 3 civ team, rolled over our northern enemy, and when their infantry arrived on my border (we had just got to rifles) and cracked through my Maginot line (I was France), they were also streaming through our northern border.
All of which illustrates that the game, if R1 is killed off, is likely to become de facto either a 5 on 2 or a 4 on 3 (depending on whom oyzar allies with). Because otherwise, tp/hw will have so much room to expand into the R1 vacuum, with a weaker 1 civ team as neighbor, that to do anything else guarantees them the win.
so for tp/hw, one might say "be careful what you wish for ... "
Final point ... it is just a GAME ...
dV