It's more than annoying, it's just bad, period, to have these kinds of fail states with no feedback. Like the 'can't build within 5 squares of another city' thing. It's never explained, there is no indication that the other city is 'encroaching' on your territory, suddenly you click on your city and you can't build anything. I wouldn't be surprised if there were 'bug reports' on this issue in this very forum.