yes it does i've played dozens of games with them settings at 0 declared war, had war declared lost units WW never appears.
edit eras
look for these lines
<Row EraType="ERA_ANCIENT" Name="LOC_ERA_ANCIENT_NAME" Description="LOC_ERA_ANCIENT_DESCRIPTION" ChronologyIndex="1" WarmongerPoints="0" GreatPersonBaseCost="30" EraTechBackgroundTexture="TechTree_BGAncient" EraCivicBackgroundTexture="TechTree_BGAncient" WarmongerLevelDescription="LOC_WARMONGER_LEVEL_NONE"/>
<Row EraType="ERA_CLASSICAL" Name="LOC_ERA_CLASSICAL_NAME" Description="LOC_ERA_CLASSICAL_DESCRIPTION" ChronologyIndex="2" WarmongerPoints="0" GreatPersonBaseCost="60" EraTechBackgroundTexture="TechTree_BGClassical" EraCivicBackgroundTexture="TechTree_BGClassical" WarmongerLevelDescription="LOC_WARMONGER_LEVEL_LIGHT"/>
<Row EraType="ERA_MEDIEVAL" Name="LOC_ERA_MEDIEVAL_NAME" Description="LOC_ERA_MEDIEVAL_DESCRIPTION" ChronologyIndex="3" WarmongerPoints="0" GreatPersonBaseCost="120" EraTechBackgroundTexture="TechTree_BGMedieval" EraCivicBackgroundTexture="TechTree_BGMedieval" WarmongerLevelDescription="LOC_WARMONGER_LEVEL_MODERATE"/>
<Row EraType="ERA_RENAISSANCE" Name="LOC_ERA_RENAISSANCE_NAME" Description="LOC_ERA_RENAISSANCE_DESCRIPTION" ChronologyIndex="4" WarmongerPoints="0" GreatPersonBaseCost="240" EraTechBackgroundTexture="TechTree_BGRenaissance" EraCivicBackgroundTexture="TechTree_BGRenaissance" WarmongerLevelDescription="LOC_WARMONGER_LEVEL_HEAVY"/>
<Row EraType="ERA_INDUSTRIAL" Name="LOC_ERA_INDUSTRIAL_NAME" Description="LOC_ERA_INDUSTRIAL_DESCRIPTION" ChronologyIndex="5" WarmongerPoints="0" GreatPersonBaseCost="420" EraTechBackgroundTexture="TechTree_BGIndustrial" EraCivicBackgroundTexture="TechTree_BGIndustrial" WarmongerLevelDescription="LOC_WARMONGER_LEVEL_SEVERE"/>
<Row EraType="ERA_MODERN" Name="LOC_ERA_MODERN_NAME" Description="LOC_ERA_MODERN_DESCRIPTION" ChronologyIndex="6" WarmongerPoints="0" GreatPersonBaseCost="660" EraTechBackgroundTexture="TechTree_BGModern" EraCivicBackgroundTexture="TechTree_BGModern" WarmongerLevelDescription="LOC_WARMONGER_LEVEL_EGREGIOUS"/>
<Row EraType="ERA_ATOMIC" Name="LOC_ERA_ATOMIC_NAME" Description="LOC_ERA_ATOMIC_DESCRIPTION" ChronologyIndex="7" WarmongerPoints="0" GreatPersonBaseCost="960" EraTechBackgroundTexture="TechTree_BGAtomic" EraCivicBackgroundTexture="TechTree_BGAtomic" WarmongerLevelDescription="LOC_WARMONGER_LEVEL_EGREGIOUS"/>
<Row EraType="ERA_INFORMATION" Name="LOC_ERA_INFORMATION_NAME" Description="LOC_ERA_INFORMATION_DESCRIPTION" ChronologyIndex="8" WarmongerPoints="0" GreatPersonBaseCost="1320" EraTechBackgroundTexture="TechTree_BGInformation" EraCivicBackgroundTexture="TechTree_BGInformation" WarmongerLevelDescription="LOC_WARMONGER_LEVEL_EGREGIOUS"/>
where it says WarmongerPoints="0 make it zero like it says above. now delcare war whenever you want and receive NO penalties