Frankly speaking, looking at the codes, I don't see why player 1 will get a better deal than player 2. But it is true that tedious looping is involved every turn.
I may answer that one, but actually is not exactly this.
It seems to apply only if:
1- You do have Domestic Routes assigned in your cities;
2- You have cities in different landmasses;
3- You have Foreign Trade Routes with players in the same landmass as your core cities.
I still don't know where in the files it's declared the City List of your Civ, but my reasoning came from this post:
http://realmsbeyond.net/forums/showthread.php?tid=4353&pid=192412#pid192412
So the idea is that your cities are ordered by TR modifiers. The better your city, the earlier it's placed in the cities' list. So when the list is done, the first city is surely the one to get the best TRs assigned to it because it'll give the best output possible (because it's your best 'Trade City').
But as this only looks at your own cities, overseasness is irrelevant.
So the issue pops when there is a tie. Imagine your 3rd city on the list may get the same ammount of
from a foreign city in its landmass or a domestic city of yours. If you are player 0, or you are before the owner of the foreign city, the domestic route will win over the foreign one. If your next city (the 4th of the list) is an island city, overseas to the foreign city being considered, it may give more
even being a worse Trade City then the 3rd one.
For the human, single player can't have this issue, if you're player 0 in MP you're also immune. Even though Player 1 won't be immune, the issue may only happen when the foreign city in a tie is Player 0's, so this won't have much effect.
The most serious scenarios I guess are:
Truly competitive MP games, where every single
makes a difference;
Massive Continent with several oversea landmasses and you are one of the last players, like player 29, in a big MP game (for unknown reasons, as it's rare to get more then 5 players playing together).
This is the only advantage of Player Order that I know of in TR calculations, and its minor. But the way to solve it seems quite simple: Just prefer the domestic over the foreign if there happens a tie. There is no loss in letting a worse city getting the foreign TR that was in a tie in the previous city's TR assignment. But there can be a gain if you let it be assigned later, if you have overseas cities.
And BTW, I would like to see where your discussion goes in the improvement of TR calculation. Even though I like the idea of getting rid entirely of the nasty loop of TR calc to enhance performance, I don't think the concept is being properly substituted, for reasons I gave there. I would prefer a not so performance-consuming TR calculation then a simple
boost that only related to TRs in connectedness.
As I said there, instead of simplification, it's turning into exploitation, as you just have to be sure every city has max cities connected to it to provide max bonuses of buildings/wonders. When you reach that point (and vassals are great assets to do it) you can declare war on anyone without fearing economic recession, while with TRs you had to be careful who you would declare war on. If my total
income from TRs was 3000, being 1500 of domestic cities and a single AI giving me 800, with the others completing the rest without much difference between then, that meaned I couldn't just declare war on this AI because I would suffer a lot from economic recession. I had to be sure I could stand the recession. Now, without TRs and with the new connectedness concept, with a couple of vassals you're free to annihilate that AI, and any other, as long as you have enough vassal cities to provide max bonuses.