I've definitely been abusing enjoying the ability too. One thing I've found interesting about it is that the CS you start nearby can have drastic effects on how you play. If you start next to a culture CS, you can really pursue high value wonders. If you start next to a science CS, you can rush military techs at a startling pace. If you start next to a production CS, you can build a truly absurd amount of assorted wonders without sacrificing on infrastructure or military units. Starting next to a faith CS gave me one of my earliest religions ever (turns 65.) Starting next to a food CS... is alright. I mean, I had 10+ pop more than every other capitol, but it was kind of hard to appreciate that next to the other yields. It's a fun and dynamic system that has made my test games feel very different from each other.
Most of this applies to bullying in general, but the combination of reduced unit maintenance and increased effectiveness means you can very realistically conduct a full scale war while maintaining a CS terror campaign. This really elevates it to a constant revenue stream rather than something you can do in between making new friends abroad. Honestly, my biggest issue was that I kept getting caught in an entertaining, endless loop of bullying and forgot about the whole world domination thing.
There was only really one point where I felt the ability was perhaps too strong while playing, but on reflection it didn't seem that bad. Long story short, I had taken over my continent aside from vassals, so I had free reign over 8 city states. As if that wasn't enough, they were all culture, science and production CS, all of which I maintained max tribute rates for some truly absurd yields.
The reason I ultimately decided that this wasn't a big deal was because, as mentioned before, technically any civ could do this with a bit more effort and I was basically guaranteed a win from that position anyway. Win More was definitely the order of the day.