The only problem with the loyalty mechanic is that the AI is pretty bad about dealing with it - seems like they settle places they have no chance of holding every game.
Hopefully Firaxis just adds the instant win button OP needs in order to avoid having to exert himself doing anything outside of the one specific strategy he's comfortable with.
Classical dark ages, when the game gives you +4 for discovering a new continent (usually easy), +3 for destroying nearby barbarian camps (and you can do it multiple times), +3 for stumbling upon a natural wonder, +2 for building/buying one ship (easy if you just make the slightest effort), and lots of +1 for such easy things as meeting another civilization, founding a pantheon, or even for settling in certain terrains (like near floodplains), and you only need what, 11-12 points? Come on...
Citing one specific example of a terrible start doesn't mean the mechanic is broken, it means you had bad luck.