I like this idea a lot, but it needs to be executed well.
It needs to have very tangible (tangible, not necessarily OP) benefits for allies. Maybe whenever your allied pirates pillage, you get some of the yields? The large borders of the cultural CS also need some tangible bonus.
I think it's a good idea though.
I thought the idea with hostile CS is that they are harder to befriend (generally their quests hurt your diplomacy in some other way), but they have very exclusive bonuses, or ones that can be used more offensively against opponents. Not that they themselves would be offensive against you. That feels like they're becoming too active.
Our ability to do some modifications to Unit AI for the CStates is what will make or break this part. If we are able to do it, then I think :
- Neutral and Hostile CStates should be a little more agressive with their units than they are now (except for the Neutral Militaristic one, which should be a lot more aggressive to fit with their them)
- Hostile CStates, designed to be "a little too active for their own good", should have some unique things about them : free Worker early for the Free City ; Naval Units roaming around for the Pirate Haven, Missionary usage for the One Truth etc
In case the Unit AI part isn't possible, then we can find a compromise, something that make so that even if the CStates Units stay the same, you still feel a difference.
Also, as a sidenote, what do you think about making trespassing through Hostile CS territory only allowed for its Ally (and not its Friends). That balance things (Friendly City-States allow all trespassing) and make the Greek UA (no malus from trespassing) more relevant.
Spoiler Ideas of Hostile CS ally benefit :
- Maritime : The Ally gains Gold and Production in their Capital each time the CState kill a Unit or plunder a TRoute (from InkAxis), scaling with era.
- Merchantile : Access to the bonus resources of the City (bonus Luxury Resource and Strategic Resource)
- Militaristic : Bonus Supply.
- Religious : Easier conversion of the City for the Ally
- Cultural : Allied Units gain +15 % CS when in the CState territory

Faith for its Friends.
Broder Growth Points for all of them (I wanted to make modifiers, like -10%, but VP neglects negative values);
Holy Site for all of them on spot without Resource, Feature nor Improvement nor City; If it does not find anything in ring 3 of the city, then it won't build it at all (such situation can be met on small Islands);
and +2
Happiness;
for every World Religion that has at least one Follower in this City-State. +1
to Rivers and +2
Unit Supply Cap. +20% XP gained from Combat for units Trained in this City-State. All Military Units gain 10 XP when trained in this City-State.
Citizen is born. +20%
Defense and +50 City HP.
GWArt / Artifact slots filled at the start (so free Culture and Science) => means faster border growth from the start
Science per
Border Growth points to the City when killing Units
Trade Routes to the City provide +5
Enemy Spy Effectiveness;