I always go waay over the OCN.
Remeber that a Forbidden palace acts as a second empire, so if it is far enough away you get another set of cities and effectively 2xOCN uncorrupt ones.
Despite this I still go way over 2xOCN, since for each Palace / FP you get not only OCN uncorrupt cities (ignoring distance corruption), but each gets another OCN number of cities with sliding corruption, up to 95% when each has 2xOCN cities, giving 4xOCN cities with workable production.
After this, you can still have cities that are 95% corrupt, and these serve several purposes. They can bring gold or science in by irrigating the land and setting taxmen/scientists, or they can provide land for domination, or they can provide strategic positioning value, or they can simply be to deny the land to your opponents, or to get resources and luxuries.