After playing the 1.2f version for a while I have had a few ideas on tweaking prestige.  

- Make the city count be based off map size before the penalty starts kicking in.

      - you could take the square root of the map size and have that number be the point at which the effect kicks in.  A 5x8 map would be the square root of 40 or 6, so after 6 cities the effet would kick in.

      - you could have it just be based on the size, such as tiny=2, small=4, medium=6, large=8, huge=10

      - the effect should relate to new cities, the existing big happy cities would remain big and happy, proud that they are having their interests looked after so well by the kind emperor.  In other words have the effect be static to the city at the time that the city is incorporated into the fold.  So if your 5th city is getting .8 of the normal prestige and your 7th city is getting .6, the capitol should still be getting 100% of the prestige that it is capable of getting.

      - also you could increase the minimum build distance for cities by a square with each increase in map size.

I do like this version overall the most yet.