Sure industrious does. It makes their defense and attack better, as well as increasing their income.
I toyed with the editor, and there's a way to make the AI much better without need of deity outrageous bonuses: tell all the AIs to build workers often.
Besides, Persian UU is damn strong, and their golden age is pretty well timed.
America, China, Egypt... industrious civs are always top dogs, aren't they?
Besides, being agressive, but not too much, helps a lot. Don't be like Shaka.