One thing that bugs me incessantly about v1.1 is the fact that at any difficulty level (for opponents) higher than normal, diplomacy is effectively impossible.
The computer produces an endless stream of garbage units (which, incidentally, is one of the reasons it sux, piss poor planning does not win wars), that endless supply of garbage units make his "power" rating go through the roof, and he, therefore, refuses to conduct diplomacy with you, despite the fact that you are kicking his ass eight ways to Wednesday.
At the very least, every battle you stomp the computer like a narc at a biker rally should add to your diplomatic power ranking vis a vis that opponent. The only way to conduct yourself with him on a diplomatic basis as it stands now is to build your own endless stream of garbage, to inflate your own power ranking.