I'd think that ideally you'd want the gold cost amount to play a factor, thus something like -5% PER gold expense?
Also, although town watch can't attack, they do make for very important units to have in every city. And this gets to the root of one of my biggest irritations with the ai structure the way it's currently setup. Shouldn't the ai wish to 'cover all bases'? The system it utilizes seems just fine for vanilla but for c2c with so many specialized unit roles, it seems that we need more ai types to get it to work correctly.
Example:
Town watch are only minimally useful as city defenders. In fact, I no longer think of them as city defenders at all beyond an incidental application based on their presence in the city when it comes under attack. I build them to battle crime. And in war they become merely fodder. I know we have some kind of new ai established for them in this regard that interacts with the property system as a whole, but this is a truly specialized role that no other unit line fills.
Thus, shouldn't AI_ANTI_CRIME be established as an ai type and then evaluated independently of the rest, letting the ai rulers know without question that this line must be built to combat their crime wherever it may exist? Do it right and the ai would manage crime far better than a human player ever could as it can keep full visibility of all factors in all cities in every round and utilize a perfectly measured response without overkill at all times, ordering policing units to resolve positive crime counts wherever they may exist.
Anti-Crime units never need to be built to go to war unless you want to make sure you have them in place in your newly conquered cities from the moment you arrive (optional war prep that can take place after war readiness is achieved but war motive hasn't been established yet.) They COULD be used for fodder emergency city defense if their production cost to power ratio was cheap enough but you'd have to want to lose them in the expected fight considering the gold maintenance costs of the units. You'd want at least one in every city to combat criminal style units, even if there's no crime there, assuming we'll be infusing them with some anti-stealth unit benefits (I don't think they have any yet but It'll be easier to give that to them once units can achieve multiple combat classes.)
This differs from considering them for the role of City Defender, a military force designed to repel attackers from the walls. Rarely, I think, would they ever be built for THIS purpose. Here, the not being able to attack and gold costs would make them poor selections. Often, its valuable to have your city defenders leap out and take care of minimal nearby threats. I was going to add the melee units get no city defense promos to the list but I've still got the graphics for those promos to do so I won't add that as a factor right now
This is just one example. I feel the ai makes a lot of tactical errors by not having a good understanding of the specifics of various unit roles. AI_COUNTER, in particular, seems way over-stuffed with various roles for units to fill. Now I admit I have never researched the structure to a full understanding, only interacted with it in minor ways, so if I'm missing some of the ways these things have been considered, by all means, I'm bringing this up so I can be corrected.