ok, there has been alot of talk about city spam and ways to limit it. my solution is to introduce the concept of corruption. i personally don't know if its possible currently(but maybe in one of the expansions), but it should make you earn your city spam if you want it. here is the idea:
in the game you have an area that is your influence ring. if you have a resource within your influence ring then you can build on this resource. my idea revolves around this. basically, corruption shrinks your influence. the more settlements you have the more corruption you create.
every settlement increases your BASE corruption, this is then applied to each city. the higher the cty level you have the more corrupt it is.
a level 1 settlement no matter what always has 0 corruption, but it generates 1. so each level 1 you build you get +1 base corruption. a level 2 generates 2 corruption. the base corruption modifier is a GLOBAL variable, however each city will have its own corruption as well, calculated with "global base + city level + or - building modifier"
now as far as the math goes and balance i am not sure, this is something that can be debated over.
now the way to get rid of excessive corruption is to build buildings that are costly(both in terms of initial price, and upkeep) but they can reduce the amount of corruption in the city allowing that city to extend its influence to nab resources.
in conclusion, the basic idea is to create a system to where you have to balance out city placement, how much you can spend on corruption reducing/influence increasing buildings/spells, and optimal number of cities or their city level.
i think that considering rulers of any faction would always have to fight corruption this could apply to both sides equally and could become strategically important decisions, especially when you decide to go to war and take over other cities( this could help hamper steam rolling as well unless you just raize everything).
your thoughts? ideas?
Edit: keep in mind the current influence system would have to be reworked a little to make level 1 cites have less influence than they currently generate, prob half as much. so you wouldn't want to spam a bunch of level 1's because they wouldn't be as useful, and not to mention that you wouldn't have access to the really good improvements that can be built at higher levels.