I agree that generally, you want to settle adjacent to fresh water for max start housing. However, I think it is still ok to settle in areas with no fresh water when you have a lot of great resources. There are other ways to get housing than just fresh water. The other resources might be worth it. In my current game, I think I found a spot with 3 wheat and 1 rice. There is no fresh water but the abundance of food resources made it a prime spot for me.
The video points out at length that the AI doesn't use any of those other methods, however.
I have had the AI settle Kilamanjaro, about 3 turns before me which pd me off. Of course then they stupidly put a holy site next to it. As you can guess, I razed the city when I took it.
Makes sense for the AI. Holy sites get a large adjacency bonus for Natural Wonders. The first time I saw this, pre R&F, I was actually somewhat impressed because (a) it was the first time I'd seen an AI settle a Natural Wonder, and (b) it was the first time they seemed to have made a sensible decision based on adjacency bonuses. Given the choice I'd rather they were coded to do that where it's suboptimal than avoid doing it at all - and the AI now builds fewer holy sites than it did anyway.
Has civilization ever had good AI outside of mods? I have played civ 4,5,6 and revolution and they have all had pretty crap AI.
It's never been good, but it's never been as bad on so many axes as it is in Civ VI. A lot gets excused based on the hard-for-AI-to-handle combat and (in Civ V) diplomacy systems, but these are errors of a type and magnitude that didn't happen noticeably in those games. Even when you couldn't see things like poor district placement (because those systems didn't exist), without looking under the hood you could tell their cities were growing at an adequate rate, and their progress towards victory was faster. In Civ IV and earlier you could see their city outputs and even the tiles they were working with spies.
It really isn't just a case of more complex mechanics and more visible features they can screw up like districts in Civ VI - the AI is objectively worse in many areas, including ones where the mechanics are largely unchanged from older games. Civ IV AI could handle health (though I think it got health bonuses that Civ VI appears not to based on these examples), which was functionally almost identical to Civ VI housing.
As depressing as the two videos so far have been, what's more depressing is that these are actually areas in which the AI is relatively strong. It seems to follow simpler rules across the board than in other Civ games, but in my experience (as one of the apparent few here who plays all Civ games without AI mods), its settlement behaviour tends to produce better results on average than Civ V, one of the very few areas where the Civ VI AI is now superior to its predecessor.