Do those cluster rules not then act to limit city placement flexibility, particularly in situations when there are preplaced cities? It would seem that if you have lots of preplaced cities in the 1200AD scenario, and limited amounts of overlap allowed, this will mean that there are fewer sites available to found cities and thus greater predictability.
That's why I think a higher separation rather than limits on overlap would give the AI more flexibility to consider more city sites when an area is already quite full with preplaced cities. Civs with smaller territory could still have a two tile overlap.
Personally, I would favour an approach where some important cities are always founded, but the rest are as random as possible. Caen, for example, is very important for the viability of the 1st English UHV, so should always be there (I argued in the past for it being autofounded by the AI in 600AD and added to the 1st Frankish UHV otherwise the human player has no incentive to go there at all), but then just let the rest of France be as random as possible.
That's why I think a higher separation rather than limits on overlap would give the AI more flexibility to consider more city sites when an area is already quite full with preplaced cities. Civs with smaller territory could still have a two tile overlap.
Personally, I would favour an approach where some important cities are always founded, but the rest are as random as possible. Caen, for example, is very important for the viability of the 1st English UHV, so should always be there (I argued in the past for it being autofounded by the AI in 600AD and added to the 1st Frankish UHV otherwise the human player has no incentive to go there at all), but then just let the rest of France be as random as possible.