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Is settling on a resource a bad idea?

Make sure you have the tech for the resource as well. Its bugged right now. You won't get some aspects of the resource unless you have the tech
 
Depends on the resource. In most cases, if settling a resource allows your city to reach other resources you otherwise couldn't by any means, then yes.

That aside, for general settling purposes, settling on plantation-improved luxuries that fall under Goddess of Festivals (wine, incense, tobacco, cocoa, coffee, tea) is great because those are fairly poor tiles to work and their pantheon is bad, so by settling on them you gain their amenity bonuses while freeing up a tile for other use.

Other plantation-improved luxuries are also good for settling, but Oral Tradition is actually a good pantheon so make sure you don't have enough of those luxuries that you'd want to take Oral Tradition.

Pasture- and mine-improved tiles are quite good to work and are rarely worth settling.
 
I like to settle on a lux that yields faith or culture. It can slingshot you into a Pantheon faster or boost your civics
 
a general rule i've used: Settle on lux, yes. Settle on bonus, no. Settle on Strategic, only when it's absolutely necessary or if under threat (they can't pillage it then).

With the addition of faith/culture to certain lux settling your first city on them give an enormous boost early game... Coffee by a river is a fantastic start :)
 
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