How would they ever know?

When they sail over to your continent eventually, IS the point. They haven't seen my lands, as regarding about the poster that mentioned "coveting lands". Same ridiculous thing.

They have seen it.

Or rather, the computer has and distributed the data accordingly.

You can do that too - just save the map, load it on a future start, and bam. The whole map for you to oyster about.
 
One other 'imbalance' to mention is the ability to sell almost anything to AI regardless of whether they need it or not. That gives me 5k+ gold during the course of the game, which yields 10 free technologies, alliances and/or most advanced army on map. How is that fair play?

:D:D:D:D:D There's our counter-balance right there! The AIs have mystical knowledge of our activities, but we get an unfair trade advantage!
 
They see me for the first time, they never met anything of the remains of the CS's, WHY on earth would they hate me????
Of course the real reason behind it is not logic, but you can make some logic out of it. They could have had contact with several CS before and heard rumours about your conquest, and thus being suspicious against you.

One real life example: in Dutch you have the swearing word 'Mongool'. Used as swearing, it is to define someone as dumb, stupid or to mark a person that has the Down syndrome. 'Mongool' however is also used in Dutch to name someone with a nationality from Mongolia. The reason behind this is because in Europe there was a huge fear against the Mongolian hordes. Which you can't blaim them, considering the conquests of the khans. That fear even struck the area that would later form the Netherlands, while the Khans didn't manage to push further than Poland - which is quite a distance away from here. But despite that, a swearing word was made up against them. Because in older times, the word was used as to mark the child of a woman who gave birth to a 'mongool', was related to a female that was once raped by a Mongolian warrior, which were being downgraded back then as a lesser race (the link between them are the eyes). A funny fact because this swearing word has been around for over 700 years.
 
My main problem is not that there is a penalty, but that it is a static one and doesnt fade over time. Like it decreases by 1% to 5% a turn or something. Also I don't think there should be any penalty for defending oneself and then taking it to the enemy.

The rule should be that as long as you take peace at neutral or better terms the first time it is offered, you shouldn't get any warmonger penalty if you didn't start the war.
 
One real life example: in Dutch you have the swearing word 'Mongool'. Used as swearing, it is to define someone as dumb, stupid or to mark a person that has the Down syndrome. 'Mongool' however is also used in Dutch to name someone with a nationality from Mongolia. The reason behind this is because in Europe there was a huge fear against the Mongolian hordes. Which you can't blaim them, considering the conquests of the khans. That fear even struck the area that would later form the Netherlands, while the Khans didn't manage to push further than Poland - which is quite a distance away from here. But despite that, a swearing word was made up against them. Because in older times, the word was used as to mark the child of a woman who gave birth to a 'mongool', was related to a female that was once raped by a Mongolian warrior, which were being downgraded back then as a lesser race (the link between them are the eyes). A funny fact because this swearing word has been around for over 700 years.

It's the same in English, although spelt Mongol and usually abbreviated to 'Mong' (not that it's commonly used nor polite to say).
 
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