I just started playing this game recently, so I admit I'm a bit late to the party on this topic. I'm sure there have already been in-depth analyses of why it's better to build 'wide' than it was in Civ 5, but here is what I'm discovering.
Low benefits of tall cities
- Flat vs percentage based modifiers. The districts and their buildings do the same amount of work regardless of the population size. There are like two wonders that have a percentage bonus, but I think that's it.
- No inherent penalty for extra cities. In Civ 5 there was a happiness hit for having additional cities. In Civ 6, actually you get one amenity-free population in every city.
Limitations on tall cities
- Nonlinear growth. This was always true, but each population point is progressively harder to get than the last. Small cities grow much faster.
- Housing. Each city gets some free housing, and provides the chance to get more housing through buildings. This is especially important earlier in the game when housing is harder to come by.
- Border growth seems slower. I'm not sure about this one, but I get the feeling that borders grow more slowly in this game. If I place cities with more than 4 tiles between them, I find that there is unowned land between them for a lot longer than I would expect. I suspect that this is partly because I rarely build cultural districts unless going for that victory condition specifically.
Benefits of densely packed cities
- Increased number of copies of a district. Some districts are much more important than others.
- Increased efficiency for AOE district buildings (eg. factory, zoo).
- Fewer dead tiles. Border growth aside, putting cities at the maximum distance makes it likely that some tiles are not in range of any city.
As a result, there no longer seems to be a benefit to maximizing the number of tiles worked per city. Instead, there is a focus on maximizing the number of tiles worked overall. There are some small benefits to getting very tall cities, such as saving on settler production and centralizing production for wonders. But I think those benefits are outweighed by the benefits of just putting down as many cities as possible, as counterintuitive as that is.