I would say, let Arabia have Medina (or Damascus, if you think that's better). We can then later send them to a remote island, if we want to.
If the situation becomes "critical" for Russia, let them have Istanbul. We don't want that iron hill anyway, if we play disconnect-connect.
As soon as the peace deal with the Ottomans expires, take the city that's closest to us. We can then gift it to the Babs. (Don't want to have their capital close to "our" SoZ...

)
How about FP 1S 1SW of NC8? If I remember correctly, that was recommended as a good location, and it seems feasible now. We even have a settler close by.
Who will be the first off-shore target? I recommend Japan, as they have the Great Lighthouse. And from Babylon the way to Japan is not far.
Regarding research: I don't think we need any libraries in this game. If all goes well, we get Mono, Feud and Engineering for free and only research Chiv and perhaps Invention. (Leonardo's will help a lot for disconnect/connect.) Then research will stop.
However, it may be different, if we really plan to go for Carracks?
If the FP will go to Russian area, can we set the Arabian cities to catapult? Probably you are right that Évora & Faro should build courts, as they will become reasonably productive. But by the time the far away Arabian towns have finished a court and barracks, the game will be over... So catapults is the best we can get from them (and sometimes a settler for filling the land).
I agree that catapults are not useful for conquering our continent, because they are too slow for our knights, but still they are very useful in this game for two reasons:
- they can be upgraded to trebuchets...
- and a trebuchet in a galley is as fast as a knight in a galley...

We will be invading a lot of small islands with 4-5 AI cities. We can fill a couple of galleys with trebuchets, land them next to 2-3 strongly defended cities, let them bombard, load them back on the galleys afterwards and off they go to the next island. Especially if we are meeting AIs with some pikes, this will significantly reduce our losses! I expect, taking a city that's protected by two vet pikes, will at least cost one knight on average. If we reduce the pikes to yellow before, we'll most likely have zero losses.
But that's a long-term idea.
Regards, Lanzelot.