I feel really sorry for the OP, who harvested his lot of sour reactions, and nearly none positive. Some are nearly insulting, like this guy who spams the thread (and most probably the whole forum).
I understand you OP, I myself got very frustrated a long time by how the global happiness works in this opus. And I still have difficulty to keep me calm when I see the AI whore-expanding when I have only 2 cities, or when they multi-declare and I can't face the AI units flow, especially being a wonder builder. That's on Immortal. I tried first to play on archipelago, but it was damn boring. Then I tried on pangaea on small with 22 civs, quited because I was feeling too much aggressed.

I was doing well though in my last game where I managed to build Hanging Gardens (on Immortal, yummi !), but I had an isolated start, and I quited when my longswordman DIED entirely versus a WOUNDED mousketaire. (on rough with no upgrades on my part, should have looked at the combat simulator maybe)
All this to say that this game is hurting common sense more than it should be, it should please hardcore gamers of our times, you know, yes, those ones lol, but the very essense of a good game is flavor, and we can perfectly taste it in Settler, while upgrading the difficulty level would just add some free spice. Unfortunately the way difficulty levels are set, Prince which doesn't seem too unreasonable is the level where G. happiness becomes very scarce. Fortunately, it does not go down in the upper ones ! In vanilla at least.
Well, what to tell you... I don't own BNW, and probably the balancing have done its job... a sure thing I can't help you. I'm mostly done myself with vanilla, the only flavor I can find it now is beating the higher levels, but as I do not seem able to do it, I'm just harvesting frustration. One sure thing, Civ5 looks too much on the side of mechanics (badly) than it does of flavor. I hope this will be corrected by Civ6, because I would like to find back the feelings I had from Civ2.