I almost never use resettlement nowadays--the stability bonus isn't big enough for me to justify civic change and anarchy, and as onedreamer points out, it's the lack of infrastructure that's at issue here. As the Romans have so many left over workers after they reconquer Europe, it's not so bad (in fact I had 15 workers building all cottages around New Orleans even before the granary was chopped), but for China, Japan and India it's impossible to get going without getting conquerors and capturing some Aztec workers. (I love it when the Aztecs collect all their workers in their remaining city and I swoop in, but when they collapse it's bad news for me, since independents can upgrade archers and build pikemen.)
So yes, I support buffing up resettlement with free buildings. The only civs that use it are the Europeans anyway who get free buildings already, so it's not going to weaken the AI that much.
But I do not think automatic spreading of religion should be the case. English settlements were founded (at least some of them) to get away from the religion at home. I usually pray that something other than Christianity spreads to my colonies before scientific method so I can get more religion later. If I'm playing a Far East civ, I pray that Christianity spread to me so I can finally get some AP hammers.