If the AI is intended to simulate a human player, then "take a final pointless strike at the civilisation that doomed me" is a very human reaction. Revenge is an entirely reasonable goal, even if it is irrational from the perspective of winning the game or achieving a good score.
And again we are in this point.....
It is desirable to have a inteligent oponent in a game, but most of the times inteligent != human behaviour or even inteligent != rational ( rationality is very time and resource consuming, especially in complex enviroments. Most of the times it is better a bad decision now than a rationally good decitsion too late in RL situations ). But I digress....
As I already said more than once, the objective of this mod is to make a AI that plays this game better ( hence the name of the mod ), and not make a AI that plays like a human ( and even then we would have to discern what human are we talking about ( the classic DaveMcW vs obsolete showdown in Strat and Tips forum ( need to find the links ) is a clear example that two humans can aproach and win the game using completely diferent strategical aproaches to the same map ), in what map, against who ( humans play completely diferently in SP and MP, and even in MP they tend to behave diferently in FFA than in Pitboss or PBEM ), the roleplay factor ... ). So, IMHO making human = inteligent is a bad idea to start with, atleast for this mod...
Now on topic:
@Martinharper
The comparison you are making is not how ti goes, because we aren't talking of a zero-sum game. Monty will not win anything by being destroyed ( well, neither will gandhi ), so equalizing player dislike for a AI strategy = good strategy for the AI is clearly not appliable here ( and you forgot that
not using the nukes at any point of your gandhi story might be a irrational move compared with the alternative ( in the end it is always a matter of comparison ) ). It also assumes that the human will go berserk and nuke with all it's might always... you know, there are people with a enough cold head to not use more than apropriate force ( especially in a strategy game

). Just because a person has nukes, it doesn't mean that it has to enter in MAD mode automatically ( MAD only is useful when the 2 parties in question have roughly the same punch power )
@ DP II ( btw, a question I've wanted to do for a very long time : any Brazilian connection?

)
Benefit is always a very relative thing. You said, and with a lot of reason, that a AI should not start a nuke war without any benefit, but i strongly suspect that our definitions of benefit are somewhat diferent

In the way I see it, and inside the discussion we are making ( AI player inferior both in nuke and conventional means to a attacker with unknown nuclear strategy in a world where you can't build more ), in this situation survivavility is the more important variable (there is no good in following a strategy that will make me die earlier, no matter how "rational" it might look at first sight ), and in that aspect gaining some extra turns as a charred wasteland ruler trumps easily letting your empire being eaten by your enemy conventional troops ( suposing you can do a nuke strike that wipes out a lot of the enemy troops OFC, as it looks to be the case in here ), barring the possibility of surrender ( in there OFC not provoking the enemy is a good strategy, but if you intend to surrender, why not do it without firing a shot, conventional or not, in the first place?

)
My point is ( speaking like if I was in the AI place ) : "Someone declared war at me. I'm inferior both in nuke terms ( neither me or the enemy can do more ) as in standing army terms, so , if they put things at full speed even if only in conventional terms I'm doomed no matter what I do ( and I don't have any reason to believe they won't put things at full speed either in nuke or non nuke terms ). So what I'm left is to survive the longest possible and wait for something good comes from a exogenous source ( enemy gets too much protesters at home, UN or the Pope gets in the way and forces peace, enemy gets bored, aliens invade the planet, whatever... ), a thing that I can't do if I'm dead. Now I have a possibility of using nukes to strike a blow to the enemy that can delay my demise in some turns ( this is a important part

... IMHO it applies to the game we are talking, since they blew with a massive ( and, by the description, only in the area ) naval fleet, that would take a while to get back ), but I risk a massive nuke blowout if I do that... So, should I nuke or not?
Well, the fact is, like I said, I am doomed no matter what, barring some almost divine intervention. OFC there the possibility of being nuked no matter what I do , or my enemy can only nnuke me in response, or might even not nuke me reagrdless what I do ,to keep his nuke power intact ( as he has more conventional troops he might decide that they are enough ). In every case , if there is a possibility of dealing a good punch to the enemy that can give me some more turns I gain more time and I do prefer to be the living ruler of a charred land ( i really don't care about the pop of the empire as long as they work ) than the dead ruler of a florescent land that was captured by the enemy (
Apres moi le deluge 
) it is clear than striking first is a good option "
@ all
I guess that, at this point, it is clear that the AI management of nukes needs a clear revamp.
First of all the AI needs to be aware of
all the consequences that launching nukes can have to them ( yes including global warming... nuke wars are not necessarilly
Ragnarok scenarios ( atleast in game ) and it is quite common that both sides survive the war, so they should consider that nuking the enemy might awaken the evil sand rains fairy upon their lands ) . This appies especially in cases where another player gives nukes to them during a war... as it is today, that is a sure way of making a international pariah out of any player in game, no matter how he was loved before ( a thing that can be used for diplo wins: bribe the guy you are competing with for the UN into a war, give him nukes, see his diplo go to the reds, profit )
Second, ( this is probably the easiest to apply ) the AI should nuke in pairs when possible ( 2 sucessful nukes warrants complete cleaning of units in tile ) and should not nuke just because there is a city or a unit in range ( I mean, given the special nature of nukes, with it's teoretical infinite kill ability but only one strike in the useful life, the AI should be heavily discouraged to use them against unrewarding targets ).
Third, the AI should consider the presence of SDI when considering building and using nukes. SDI as it exists in game ( with it's completely over-bloated intercept ratio ) skewes completely the balance of making nukes ( and of what nukes to make ) compared with the conventional army. Same, in far lesser degree, to the nuke shelters.
Fourth, the AI, in a enviroment where they can't build more nukes, should be somewhat weary of using them. Well, this applies to all units, but here it definitely shows a lot.
P.S Massive x-post with Piece of Mind