Depends what you're going for. If you're going for a spaceship victory, for example, at a level that is challenging for you, there is usually a point of diminishing returns on expansion. As Wacken points out, far-away cities will generally be too corrupt to do you much good, at least in the short run. You'd probably be better off converting your settler factories into 'real' cities, and building military and improvements. If you need more territory later, you can always take it by force.
If you're going for domination or conquest though, basically every patch of land that you occupy is one less patch of land you have to take later. So I'd push expansion much harder in that case. However, you don't necessarily have to keep the settler factories going to claim those last three tundra cities, or whatever. You could build a few settlers out of a few of your size-4 half-corrupt cities, and let the most efficient cities start on military.
The more you play, the more you'll get a feel for how much expansion is enough.
Renata