It was used like the second option, taking city names and evolving into cities. Fort is named Barcelona. Unfortunately, happened what I was excepting and I miserably failed in AI coding. In "rethought" version settling a new city will be rather a big deal, though I think I am gonna keep adding names to the forts (which will attack/defend itself like a city, taking control over nearly tiles ~ basically a city with no production or other yields generation). They will control their own territory (so losing a City will be not equal to losing Forts. Same for colonies and Holy Sites (those three are like a Capture points). You see, I haven taken maybe a bit cheesy path of world generating. The world is pretty much done at turn 0, with some RolePlaying mechanics. I find settling cities as one of the most interesting aspects of civ5, but hopefully giving up on it will save a precious gameplay time (I aim into action packed short games) and AI coding for me.