Personally (and I am aware that this is derailing a bit) I have come to believe that this is no issue at all. Technological and socio-economic foresight is an issue; wanting to paint the map red is perfectly good roleplaying. I agree that this attitude was more characteristic for some states than others, and had various limitations, but there scarcely was a state or at least polity type that was exempt of people with ambitions for conquest. It's just that in, say a Greek city-state, this was both entirely impractical due to limited resources (to generalise)
and politically hazardous; didn't stop people from trying every now and then.
I think the real issue is that empire-building, while widespread, is actually covered rather poorly in its many interesting aspects. Quantity over quality. It is to be fixed by the introduction of various historical complicated factors both during conquest and in subsequent administration. Empire-building must not be externally encouraged or discouraged; it must rather be made realistic and challenging, both in military and political regards; that's one of the things I hope to achieve when I get around to launching IANES.
As for your "ruleset", there really isn't much to talk about there, now, is it? Except inasmuch as not having states in the Bronze Age might damage immersion, but that's more a setting question.

Also, what do you mean by "formal armies"?
I am willing to agree on the "no maps" part, as it is close to one of the more fresh start-type projects far in the back of my head, but keep in mind that you still will have to describe the terrain in question in some detail.
You might want to specify the enforcement mechanism in particular, i.e. the limits of reality and how you intend to enforce them in avoidance of world-ruining nonsense.
EDIT:
Again:
What do you mean by that, exactly? Migrations?
The idea is that players will be focused on stories initially, they must write myths and stories of their people, shaping the culture of whom they control. There will be some kind of national movement throughout the first number of updates, but it will not be obvious to players. Then, as time goes by, more responsability comes to the players, as their cultures develop into small states. And then, civilization begins developing, and the conquest for the world begins...
This seems somewhat lopsided; possibly a false impression, but still, I must voice my concerns: culture does not stop developing after civilisation begins, but rather becomes much more varied, complex and generally interesting; likewise, prehistoric socio-economic developments are arguably as important if not more so than the prehistoric cultural developments; besides, all is intertied; but right now this might be read as to imply that all of culture is to be defined early on, and then the focus shifts more towards military and political matters. Which, ofcourse, makes no sense. Arguably, developing prehistoric culture much is a waste anyway, since it's going to undergo some really major changes in civilised times before reaching some measure of solidity (compare what we know of Shang Chinese culture, Han Chinese culture, Qing Chinese culture and relative differences between them).
EDIT EDIT:
I'd like ideas on other internal effects that might be appropriate. In addition, this discussion has stirred the idea of creating a regional influence for culture and perhaps have it affect the factions in neighboring nations, but I'm not sure just how much effect a strong French culture would have on its neighbors in game terms and what those effects would actually be.
Yes, that's a wild card, isn't it?

But the idea of grandeur is that your word will carry more weight in general. It would make it easier to influence a country's government or to overthrow it and set up a more friendly one, and would make it more difficult to go to war against France in most circumstances (but not too much more difficult, and remember that (widely-perceived) political necessity+diplomatic continuity tend to override). It should probably also make integration of conquered territories easier. It always helps to have a reliable group of Afrancesados! But yes, the short-term effects are difficult to measure, and culture seldom has any solid and irrefutable effects.
Still,
neglecting it should be rather perilous in the terms of both domestic stability and international prestige.
Also, I must insist on grandeur depending on more than just culture, but also on "decisive battles". Poltava netted Peter the Great as much if not more as the construction of St. Petersburg, at least in the short term. An effective show of military force or diplomatic finesse would always go a long way in asserting pan-European hegemony.