As Doug.Lefelhocz showed us his Korea, I'll show you mine. I just learnt how you capture screenshots, so now I can show how I go about my city placing in the early game.
What I want in the early game is to capture the goodies. Often this means I end up with CxxxxC.
The first city I founded, P'yongyang, is put where I put it for the Ivory. I didn't put it right next to the Ivory, because that would mean missing out on the river, but it takes it in after a border expansion. That's good enough. It's CxxxxC between P'yongyang and Seoul, a bit wide, but that means I've claimed a fair bit of land.
Second city; Wonsan. Ideally I would have put that city one hill closer to the capital, to leave more space for an extra city right on the coast, but I was afraid that if I left space open there, the Mayans would grab it. So Wonsan went right next to the Deer and the Incense. On a tight map like this, the AI can all too easily beat you to the best spots. The Greeks had already beaten me to the Dyes, you see that in the right of the picture. I didn't go for the Dyes first thing because that's all jungle there, not very good terrain. So the Greeks got the Dyes. I still managed to get my cities in at good spots. Because what you see in the picture is basically my whole empire in the early game. There was space for one more decent city to the north, and way west I was able to squeeze in two more coastal cities. That was it. Until I conquered the Mayans. The Mayans hadn't got their city placement right. With them being Agricultural, and this being Demigod, they should have beaten me to at least one of those luxuries. But they chose to settle somewhere else. They still had Spices in their starting spot, but not much else. When I got Iron, through a trade with the Byzantines, they were soon gone. Oh, you can see something shiny in the left bottom corner, but that's not Iron, it's Silver; I've modded my game slightly.
Anyways, I'm not sure this adds much to the debate. I find these debates about CxxC and CxxxxC often a bit abstract. It's the first couple of cities that are the crucial ones, on a tight map at least. They need to cover the crucial spots. City spacing is probably mainly a discussion for spacious maps.