Lots of good ideas being thrown around, this is excellent! I'm going to limit my response, though, to just a couple of points so that I don't write a book. Not toooo big of a book.
Research:
Niklas said:
Do we really want to continue on Literature in that scenario? 19+ turns is a lot, and we won't have any use for libraries at all if we run 0% research. The only use I could see for it is if we manage to meet an AI that doesn't have it yet. Seems unlikely, but not totally out of the question. But is it worth the investment? I think not. Better chalk up the invested beakers as a loss and go on to more important things, rather than losing even more to something we don't need.
zyxy said:
Will we build libs? Does it pay to keep researching Lit? I guess yes, but I am not sure.
I agree with both of you.
I see Lit being valuable as a trade tool only. The exception to this would be if we short-term built a few Libraries to speed Republic, but I think a prohibitive 80 shields each makes that a totally unfeasible strategy.
In the distant future, we'll probably want Libs and Unis in our main cities, but we know that the AI already knows Literature, so we could just acquire Lit when we need it. I don't think we should mass-build Libs for a long time though.
No, the only reason to keep researching Lit is, as Niklas speculated, if we can trade with some isolated AI. I'm torn on this question. I think it likely that we'll find a few Meleet-ordained backwards trading partners designed to give us a boost. But will it be worthwhile enough to delay Republic for 19 turns while we finish Lit??
Well, if we finally get contacts, I expect that most other civs will have Philo and probably CoL. If we finish Lit off now, we won't have to research Philo and CoL at monopoly cost. We might even be able to purchase one or both of them.
As zyxy pointed out, getting contacts will only lower tech cost by 2% each (thanks zyxy, did not know that!). Still, we might be able to recover the 19 more turns worth of time invested in Lit. So, I think the call on this one is very marginal, and because I expect us to finally breakthrough and get contacts

, I say let's just finish Lit off. But, again, very marginal.
Town Placement:
Niklas said:
Will 8 good towns be better than 12 somewhat good towns? My gut feeling is no, in particular since we don't have fresh water, and that makes a CC as good as a mined grass, so we can just as well settle.
zyxy said:
No fresh water or aqueducts (for a long time), means we'll be stuck at size 6. Coastal tiles count (our harbors are cheap) and are in fact very good, as they bring lots of commerce. This determines the density of the placement. Probably we can place a few more towns.
Yeah, I agree with you guys again.

I think a strict cxxc build pattern won't make a good enough use of our tiles for a long time to come.
Still, I think it very important for us to plan on size 7 cities. We get like 3x as much free unit support in Republic that way, and unit costs will be important to manage carefully. The extra lux tax cost will pay for itself.
I like the idea to build more cities to take advantage of harbors and the high commerce values of coastal tiles.
I'm thinking like 10-ish towns on the Big Island. Enough so that until we get Aquaducts, we can maximize our tile use, but few enough so that we can get to size 7. I haven't worked out a dot map or food calcs to see if this works out.
Remember that we'll get aquaducts long before we'll get Astronomy.
Move the capital to Pink Dot? Not very urgent maybe, and we can build it by hand (300 shields up to 23 towns). A free palace jump might cost more than it brings (EDIT: because of loss of a good town with improvements).
Yeah, I think capital at the Pink Dot too. But I would do a free jump instead of a handbuild. We would lose a granary + harbor + 3 citizens (90 shields and 3 pop) vs 300 shields. I think 210 shields is more valuable than the 3 pop, so the free jump looks better. This is provided we have a settler on hand in Sensei to rebuild that site immediately after the jump.
Republic is 1400 beakers

! Still, max research will be faster than min.
Dang.
zyxy said:
Little difference, unless we want to train more workers for population transfer.
Yes, I think this might be important to look at. Also building some workers in the Ao or Akichi to improve the land, especially roads.
I lurked the Spooks thread a lot on SGOTM 12. One thing they did that was huge was to build tons and tons of workers in cycles to quickly improve the land, then add back in those workers post-hospitals (or aqueducts) for a massive beaker boost.
Using the greater growth efficiency for size 1-6, and then using worker joins for size 7 and above would be worth planning for.