I really think there is something wrong with my game modding. Every random map, with everything set in "standard" gives large areas hardly suitable for settling.
I agree with epicivfreak - that looks like a 3 billion, or at most 4 billion, map. Try 5 billion for fewer mountain/hill regions.
It also looks like it's a big map from the mini map. The bigger the map, the more likely you'll have at least some areas that are not habitable. Which isn't necessarily inaccurate - think of the Sahara, the Gobi Desert in western China, the inner part of Australia, or the rainforests of South America; even the Rockies and deserts in North America weren't that hospitable for a long time. It's just better if that area isn't near where you start .
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