So you're saying it was different with the original WWGD? That was my impression - that Sneaks had eliminated the "Chieftain" bonus, but that the AI still received more than the human on the higher levels. Are you saying this was never the case... just that you may have goosed happiness more than you should have?
In that case, if you lower it to 8, wouldn't the human also be penalized, and have an even harder time expanding?
My point was that with Handicap_AI_Standard HappinessDefault of 8 and leaving the player's HappinessDefault at 12, after the first city is settled with the AI's happiness they are equal (with the AI's perhaps one higher).