Txurce
Deity
that is exactly that stupidity i have talked about in version thread. after certain point, your( or rather their) peace value drop from thousands to hundreds, while values of tradeable objects remain in thousands value. capitulation is impossible ofcourse, because you can not vassalize master of another vassal and so, your best chance for getting some valuable peace treaty is not going by hiawatha, but rather try ask some peacefull and rich enough civ, which can be confident in peace treaty between you two. most of ,,advanced'' negotiation options require you having an embassy, which is stupidity itself.
I think you're wrong about this.
Also, whenever the terms drop from thousands to hundreds, either the AI is broke, or there has either been a corresponding improvement in their situation.