I definitely prefer the sprawling out and placement decisions instead of the old model. But I do agree too that sprawl is too bad. Tossing out some more ideas:
-Maybe base yields for buildings should be lower, but give more weight to adjacencies. Like a Dungeon being +6 production/+2 influence and the only cost is 3 gold and 3 happiness means it's very strong. If its base yield was brought down to maybe 4 production/2 influence, it would be strong. But then you have something else that causes that extra +2 to come back. Like maybe all the yields are dropped by that amount, but then they get that final +2 back by being in a quarter? Basically give you an extra reason to complete a quarter. Another option would be to give all buildings a generic +1 adjacency with neighbouring quarters.
-At the same time, I really think the warehouse buildings need to be moved away from the whole building/quarter model too. I really think they should act more like walls, where they don't take up regular building slots. I suggested it somewhere else, but you could even move them to be something you put on rural tiles too.
-If you do both of those, you lose a lot of buildings to sprawl out, but I don't think that's a problem. It means it's hard to sprawl to reach the further tiles in antiquity.
-I think what I'd consider adding on top is that any buildings that are 2 eras out should probably turn into ruins. So that old library built in 2000 BC should completely disappear from your settlement when you hit the modern era if you didn't overbuild it. Let us convert a tile back to nature
-At the same time, I think especially once you get towards the modern era, probably we should allow some level of "connector" buildings. I would greatly reduce the yields of the City Park, for example, but let you spam them as repeatable urban districts. Basically let me convert space to greenspace, give me like 2 happiness from them, but have them give a +1 adjacency to all neighbouring buildings.
-I do think the game could use a few other options on tiles. Not every hill IRL is something that can sustain a mining operation on there for 3000 years. Maybe each tile we get some sort of choice - either you can keep it natural, it gets a basic 1f/1g for like "normal rural activities", or you can choose to set up intense woodcutting/mining/farming operations. Those get bigger yields, but they can only sustain themselves for a number of turns before they expire, and the tile gets stuck as a less productive tile.
I think there's probably a few other things. But the game ends up looking too much like the Ruhr valley already in antiquity. It's okay to get there eventually, sort of, but it's definitely there too early.