I think that settling in place would be a great idea, because you are free to greatly utilize your Expansive worker bonus. Why? It's because settling on the hill and using the forested hill tile on the south gives you whopping production for Worker at the start, allowing you to get him in 13 turns.
Istanbul founded there is not a bad idea - in fact, you could later move your capital a bit to the center, and making Istanbul your Globe Theatre/National Epic city, running full food. Moving south to the lake makes Istanbul much more productive, but less food - wasting a good GP farm location. Fresh water is not a priority playing with a boon of cheap Granaries&Harbors and +2 health.
You are pretty likely to move capital elsewhere anyway - it is obvious Istanbul is in the east and won't save you maintenance if you choose to expand west.
Expansive is a fest for whipping enthusiasts, because you can make a Granary pretty fast and regrow population in no time.
Besides, location one south wastes a good GP farm opportunity, AND it grabs several hard to use early game plains tiles. In short, moving the Settler south would make an ultimate production hoarder, but still those hills need food...
Settled on a plains hill, you grab all the food in the initial location. It's usually a plus.
However, I'm still a mere Monarch player. It's only my two cents.
