I really liked this change, and it made the game more interesting for me. I also noticed a slight delay in the victory condition races during the Modern Age.
I believe their original intention at launch was for players to convert only three or four of their settlements into cities, while keeping the rest as towns. The problem was that cities were simply much better than towns, so there was no real reason to keep them as towns. Now, there’s an actual decision-making cost that has genuinely changed how the game is played: is it really worth converting so many settlements into cities at the expense of making buildings significantly more expensive?
Moreover, these changes also affect social policies and civilization bonuses that interact with towns, which used to be pretty useless before.
I believe their original intention at launch was for players to convert only three or four of their settlements into cities, while keeping the rest as towns. The problem was that cities were simply much better than towns, so there was no real reason to keep them as towns. Now, there’s an actual decision-making cost that has genuinely changed how the game is played: is it really worth converting so many settlements into cities at the expense of making buildings significantly more expensive?
Moreover, these changes also affect social policies and civilization bonuses that interact with towns, which used to be pretty useless before.
Plus the best thing Civ7 did was reduce micro. Maybe better to look for solutions that don't increase it.