I see it as a negative. Huge empires aren't supposed to be better than smaller, the game is clearly designed to not be this way. Also it just gets boring with too many cities and immigrants.
I agree with you here. Here is why smaller empires are suppose to be better than large ones:
1. Logistics - Being small allows for easyer movement of goods from one location to another, not to mention the organization of troop movements, and good movements.
2. Having a large empire, as in terms of the 13 orginial colonies made it harder for America to win the war of independence. The British invaded areas that were more supportive to their cause and from the last time I read and checked the British swept through the southern colonies. Plus by the time the later colonies were being founded, they were mainly to be used for prisoners hence the name penal colony as well for indenture servents. Georgia was a penal colony for the British as they wanted a place to place their criminals at. After America declared independence, the British just sent their criminals to Australia. Further during the war of independence the Americans were only able to win due to French intervention, otherwise the war would have gone on longer, and possibly been a loss for the revolting colonies.
3. Having a huge empire in the game, causes your military forces to become thinner and the requirement of more ships to move the goods to europe. All hinderances to the game.
4. In a game such as Colonization, it must be noted that a player needs to know when it is worth to expand and when it is not. If a player just tempted to keep expanding, then he or she should be penalized as it would be harder to get ready for the war of independence.
5. If increased immigration is now apart of the game, then the ability for cities to be become bigger in area is needed. Otherwise it becomes annoying having to keep build colonies without a real reason or need. It just becomes a necessary act, because someone has no other use for the colonist. Sure you can just put them into your military, but you can only do that so long before you run out of horses, and guns. Heck a naval victory is a lot easier to achieve in the game than a land one. It is easily possible to win the war of independence with just 3 to 4 ship of the lines. Thus resulting in a 2 to 3 turn win of the war of independence. Espically if you have 2 to 3 more ship of the lines being produced and coming out. Either way if you reduce the King down to say 2 to 3 ships, he cannot transport over as many units, and naturally your army does not have to be that big. Hence you do not need a huge empire. Just need a few great locations.
6. The idea of creating a huge empire does not seem to be apart of the game. Even if there is a lot of land, it is not the goal to colonize the whole land mass. The idea is to found a self sustaining group of colonies that can handle their own affairs.