Sorry to add to this thread late, but here is my two cents.
Prior to the patch, I thought the game was fine, bar the bugs and such, it was fun, even sided and challenging. I was Japan, played on Earth, was on my own in America with Aztecs, eventually captured the entire South + North and moved onto Europe.
Now, the game wouldn't work with the new patch, and when starting a new game, I am shocked to find, that even on Chieftan (I like just having fun) the game has reverted to the stupid Civilization III game plan of. Spam Settlers. Lots of them. Over. And Over. And over. Spamming them till they have 20-30 cities in random places, no thought at all where they go. The AI, even on EASY, then just overwhelm small empires through HUGE cash income (70-200 a turn) huge armies, huge luxury resources and even worse, which is research. Therefore, since they have decided that the AI should be stupid and designed to pointlessly expand and build Trade Posts on every tile, small empires are not viable compo. You either try and take out a few cities with your 3-4 troops and hope to get peace, but no, this does not work! While I took out 12 American cities, by the time I had another force up, they had built 16 more. You can't do a culture victory because you end up being targeted cause of your small military, thus, loosing again. You can't do diplomatic victory, cause of above reason. Science victory is out of the question, you'll be lucky to be 200 turns behind another Civ's research.
So, to my point. There needs to be more bonuses for small empires. I normally go, Tradition --> 33% Wonder Building. Then Liberty, which I max out. Then Commerce, max out. By then I'm dead or nearly. I prefer having one or two cities, my Capital being a Wonder Capital. This also pisses off the AI. So, there needs to be production bonuses for small empires. I never settle my capital without being next to a river, the sea and not on a hill just to get some extra production. Then comes to the research problem, you just can't get enough research going to keep up with the others, while you're in Classical, they are totting rifles because they have 30+ cities with libaries. Next is gold, everything is so expensive to buy, you hardly get any income. To win a game, you just go into Liberty, spam settlers, build near resources. Done.
I'd like to see a policy that when you select "Research" from the build menu, it gives 200%

instead of 25%. That way, one decent city could give out 80 research points when researching. While some of you might say "Too much" think about it, you won't be able to build anything while you are researching, so you'll be torn between building new things or trying to keep up with the others.
Next policy I'd like would be "Population Tax" where you get 5 gold or something per population. Thus, big cities can give you enough gold to keep up with those who make 200 a turn by having 30 cities. However, it could also increase unhappyness the more cities you have with that policy, thus it means you cannot go building/capturing more and getting more cash. These policies should reward small empires and punish big ones. If you wanna go big, use the other policies. I mean, 30 cities, all linked to your capital + Machu Pichu = insane gold income.
Final policy could be like "Government Work Projects" which gives you +1

per population in that city. Thus, a big 20 pop Capital will get 20 more production, which will help you get buildings + wonders up quicker for the cultural win, but allow you to switch to research + wealth when you have nothing else to build. Or it allows you to protect/go to war by building big armies, but you'll then be controlled by what policies you used... I mean if you are careful and keep happiness high you could expand and keep the polcies designed for small empires.
Shame I have NO idea how to mod, as I would do it myself, but I dunno, what do you guys think? I just think the game supports massive, pointless and blind expansion, and in its current state, small, spec cities don't work and cannot win.