There are many strategies to playing the game. One is even called ICS... "Infinite City Sleaze", which is lots of small cities packed next to each other.
Personally, my strategy is to plan for the future by minimizing overlap. I want cities that can make certain specific multiples of shields... 40, 44, 51, 54, 60, 80, 100. I also want big trade and trade bonuses. Big cities are best for this.
That way he doesn't need to build the more expensive sewer system.
That is a red herring. Don't get sidetracked with that... the cost of a sewer compared to the cost of a Solar Plant is nothing... plus a Sewer is the gateway to powerful cities. Do NOT hold back your growth because of your observation that Shadowdale holds many of his cities to size 12 in mid-game while building almost every other improvement in the city list. Take the benefit of a larger city... that is what funds your later growth and economic base!!! Sewer is about my 6th to 8th improvement in my "typical" fast growing late game democracy city.
It does look to be beneficial to have many smaller cities,
In low tech civs, or in early game, lots of tiny cities are "better" economizers of resources. Not in mid/late game, though.
I was spending considerable time thinking about this and then I realized that it doesn't matter too much (for me anyways). The only time I play the game right now is for the GOTM and #9 is most likely going to be the last one for Civ2,
The posted plan by Matrix is to continue the Civ II GOTMs for a few months, until the transition to Civ III is complete (if ever). We all hope Civ III is the great game we expect, but after SMAC, CTP, CTP II, and even ToT... well, Civ II still rules.
What he said was that as interest dwindles in Civ II and Civ III is taken up by everyone, Civ II GOTMs will be discontinued at some point. If Civ III comes out next month as planned, the first Civ III GOTM would presumably be November.