Deau
Emperor
no problem for the player, but let me rephrase my issue:
Is it normal that the AI civ only have 2 cities in 1000AD?
It depends on the difficulty level you play, but also on the randomized expansionist flavour that was given to the specific AI.
Ultimately, I have also noticed (on Deity at least) that those new early wars have been significantly refraining the expansion of the civ that was playing defensively. More hammers spent towards defense as opposed to settler, also potentially a few settlers killed/captured while moving to their settling location.