Do city-states conquer and keep new territory?
I have seen a city state with two cities. It may have been the city they took could not be razed.
Do city-states conquer and keep new territory?
You can gift units immediately by using the unit gift icon - but only in the city state's territory.[...]
Like YosimiteMark said before... This is untrue. You can gift units from anywhere on the map. I do think that it just takes longer for the state to get them, but I'm not sure.
Correct.So, you can do it from anywhere with a three turn delay, or do it instantly from within their borders.
Is that right?
Do both methods have the same diplomatic effect?
You can gift a unit to a city state from =anywhere= on the map, simply by clicking on the city state and choosing 'gift unit' then finding the unit on the map and clicking it. I often use the units that military states give me to supliment the army of any city state that I think could use the help. There does seem to be some sort of upper limit to how many units they can have though. Also there is a bug that a unit gifted to a city state, but still during the transitional period, does not remember it was gifted during a reload. So if you save-reload during play, make sure not to gift any units during this time.
City states do NOT raze capitals, including other city states. They sometimes don't raze a city if it is close enough to their borders, but I don't know what the specifics on this are. Either way you get the new resources they acquire, and any perks associated with them (including additional research) if you have the patronage policies.