Mines were overpowered, and this policy makes them less important, so it improves game balance.
I disagree that mines are overpowered - I just think that villages are slightly underpowered because they are gold + science rather than 2 gold.
But even if that were so, then you would deal with the problem by changing mines. Not by creating an overpowered policy that only ~1/3 civs will take. And not by boosting specialists, which doesn't address mine vs other improvement, or specialist vs other improvement.
Villages also don't make sense when I can get 3 gold + 2 production + 2 GPPs from a merchant.
My goal was for the specialist bonus to be the main effect, not flavor.
I don't think this is what was discussed at the time. I think there was general agreement that the free great person in the early game was very powerful and a fun way to give a great person to Liberty civs who otherwise might have fewer great people.
I think that should remain in place.
But to do so means that it is the primary effect of the policy, and so any other effects need to be weak. If you insist on having another primary effect on the finisher (and one which can easily give +6 to +10 production per city), then you have to remove the free great person.
But as many of us argued at the time, I still think that forcing Liberty players into a specialist-focused playstyle is bad for the game. We agreed on a boost that would encourage players to use one specialist per city. That is totally different from pushing Liberty players into primarily using specialists, and making it so that Liberty players mostly don't need to work tiles except food and bonuses.