I prefer the settlement limit mechanism to Civ 6’s amenities. The two are similar, but the latter is opaque and overly complicated in my opinion. There are all these different luxury resources in the game, and (without mods) you’re supposed to keep track of which ones you have and which ones you need to buy from other players. If you really cared about optimization, you would buy or improve luxuries after checking whether you need more, which means you would need to cycle through all your cities and check each one’s satisfaction status. In retrospect, it seems insane to me that the game expects the player to do this to play well.
I suspect complaints about the settlement limit partly stem from the fact that it makes the penalty of over-settlement more obvious. Returning players who didn’t pay attention to amenities, often inadvertently letting their cities suffer 10-20% penalty across all yields, are now upset as the game makes it really difficult for them to ignore this fact. The penalties aren’t greater than they used to be, at least not significantly under normal circumstances. For each excess settlement, you lose 5 happiness in each settlement, which amounts to a maximum of 10% all-yields penalty. In 6, dropping one level of satisfaction leads to a ~10% all-yields penalty (except food, which is 15%, when displeased). In addition to that, in 6, low amenities can cause your cities to rebel, which is something that doesn’t happen in 7 outside of crises.
Having said that, I don’t want to dismiss this concern as a skill issue nor am I suggesting that anyone who raises this concern should learn to play the game better. One similar complaint I’ve heard is that the term “settlement limit” is just sort of… naked? There’s no apparent attempt at dressing up the mechanism as something other than a balance maker. It’s as if they renamed the food yield to “population increment”. I know playing this game is about making one number go up by making another one go up, but the game should try to mask that as best as it can. In fact, I’m sure Sid Meier has talked about this very idea when he talked about how games are essentially gentlemen’s agreements, in which the game proposes a set of imaginary rules that only make sense if the player agrees to suspend their disbelief. In a way, Civ 7 isn’t holding up its end of the deal.