some times the forests are insanely large while theres not much trees else where on the map.

Or how about being able to use the "demolish building" button in the Build function to raze forest (or anything else on a tile, for that matter) back into "basic" land, as well (rename button "raze tile", or something like that)?

Perhaps a variety of magical solutions could be implemented.  Currently, Earth elemental magic can lower and then raise the land to make it clear. 

+Perhaps Fire could initiate a "controlled burn"?

+Perhaps Wind could breathe life into them, making one square into one Ent monster?

I live in a real 'urban forest.' The idea of magically burning or manually clear-cutting forests seems to defeat the point of the OP?

One big reason I like the idea is that it should drive some art that could help make cities more visually distinctive, kind of Rivendell vs. Minas Tirith. And maybe 'mixed' cities with a forested quarter, a hilly quarter, a riverfont quarter, etc.

Another idea: it would be interesting if certain things like mansions could ONLY be built on forests.  Right now I think it's lumber mills ONLY, which currently isn't great because you never need more than one but your city might be surrounded in forest.

No fundamental objections to forest-razing as an option from me; I just had an alternative interpreation of what it means to "use" forest tiles. They currently seem to be uninhabitable except by folks producing wood as a resource. Two of the three prominent cities in Lord of the Rings are forest cities, so I thought it would be nice if Elemental had both art & functionality to make forest cities possible in the game.

Re the primitive state of the magic system, I guess I also assumed that the much-discussed Populous style big spells would make levelling forests magically possible, at least by the late game. Using magic or muscle to clear small parts of forest could also be a good hook for quests and/or interaction with independent powers.

Is building your city in the middle of a forest really a good idea? As an evil player, I hope I have the ability to burn down said forest destroying your city without losing a man- or at least causing signifigant damage, allowing my troops to roll in once the fire dies down and roll over it without much trouble.....

EDIT: And based on the screenshot even better- your up against some mountains - If I start the fires in just two directions you'd be completly trapped.

Woot double post forum lag.