Just played a Standard-size, Pangea-plus map with the number of civs whittled down to 4, and the number of CS's to 8 (I like expansion games myself).
The civs in-game were
1) Russia (myself)
2) Ethiopia
3) Greece
4) Japan
By the time I'd won in the 1700's AD, I'd kept a tally of how many cities each had had before I DoW'ed them and taken their capital:
I'd had ~7 cities
Ethiopia had ~ 2 or 3 cities, which makes sense, given their UA
Japan had around 12 cities, one or two of which they'd taken from Greece
Greece, which I attacked the earliest, had ~6 cities
Ultimately, I didn't see much difference from vanilla (although 3 of 4 civs were vanilla civs to begin with).
My thought is that if AI cities seem less abundant, it could be because buying settlers/workers is now quite difficult and the economy is tougher in general due to Trading Posts being delayed further into the Tech tree, which, when coupled with a few extra buildings (mostly Shrines) taking up gold via maintenance, could leave the AI hurting for gold.