Should have three types of monsters, and if we have them already, they should be more defined to follow a Lair, Roamer and City-Eater logic. Lair types actively defend nearby resources and their camps, but they don't stray far from it being very territorial. This way if an AI (or player) spams outposts trying to whore resources near you, it will force them to first bring an army to deal with the critters, like the player has to do, otherwise goodbye outpost. I think it would also be neat if these monsters grew in power or experience for every outpost they eat.

Every now and then, a roamer is spawned from the lair. This kinda happens now sometimes, but the territoral behavior is funked. I'd like to see them more protective of thier little areas. Roamers look for new resources to make a new nest camp, but will give chase to any that stray across their path. City-Eaters just actively look for yummy fat cities, but maybe tie it to a tech or something and these shouldn't spawn anywhere near capital cities.

Suggestion regarding the monster chasing AIs; overland map movement should consider initiative when dealing with AI vs AI, if it doesn't. A high init unit should be able to avoid a slower init unit, whereas slow init units will eventually get caught by higher init critters.

I would agree with temporarily making razing not cause loss of fertility.  Then the AI can be attacked and if it has enough pioneers it just might survive... for a few turns at least.

I have seen monsters take out cities as well, but I think that it may actually be accidental.  I have my game crash a few times, so I was able to witness the same Drake cross AI territory several times.  Once, he attacked a city and wiped it out, once he bypassed the city and took out an outpost, once he walked right around the city and got stuck next to another AI city where he stayed for the rest of the game (or until I took the city.  He attacked me immediately after I took the city).  I think that people are seeing monsters wander over a city and say "See, he attacked it!" when the monster is actually just wandering around and happened to wander into a city square.  Given the lack of interest they typically show, it is either completely accidental or something in the monster AI gets bugged and they stop responding to AI players, especially non-units.

Nah, I've seen the monster beeline for an AI city before, when there's nothing around and the monster just ride the road into the city and smoke it, it's pretty obvious. That isn't too say that there aren't times when the monsters just doesn't seem to notice the city being placed under them. Heck, I saw monsters sitting ON TOP of an AI city and it still didn't attack it (it attacked me as soon as I went close, of course).

Case in point: http://i107.photobucket.com/albums/m297/KStar099/Fallen%20Enchantress/FallenEnchantress_1336463683.jpg

And it's not just the monster AI, Gilden, the faction in question was clearing wildlands at that point with their armies (had a massive one before I started killing them all), that stack right next to it should clear that bear easily, but they didn't. Perhaps it's because the monster AI and the AI players are on different threads and sometimes they just don't see one another?

In my last game I saw an AI take a scout unit through a sea of monsters (bears, stalkers, etc) as I was following behind killing them all for xp. The AI collected a couple heroes on the way as well. Then it wandered next to a shrill lord and he stepped out and stomped on them (staying on his lair the for many, many turns). That Shrill Lord never moved one block from his lair at all at any point.

So something very weird is going on with monster AI in the way it treats Civ AIs. It is anything but fair or the same in how it regards players however.

I am playing 0.914 and have not seen evidence of the AI cheating yet, but I am sure that it is.  

I am keeping a careful watch for any signs of the dirty, filthy, cheating AI, and will report my findings as and when.

My most recent game had a Forest Drake that literally walked over AI Kraxis and proceeded to meander about until my sovereign came along. The walking over may be due to the movement oddities, but the drake certainly didn't seem very interested in the fellow despite him being in its path. While I have seen monsters attack the AI cities their decision doesn't have much rhyme or reason to it.

Aww now this is getting a bit stupid.  I am getting high level monster that were next to the AI outposts and towns coming miles to attack my towns and outposts.  I am allied with the AI so it's not like he is sending them.  Come on Stardock, fair play.

No, no,no.  I have just done a test.  I had my men leave the their towns and stand on the edge of the borders and sure enough the game sent monsters in from God-knows-where that one-shot my towns that has taken 100+ turns to build.  It was a good job it was only a test and I had my save.

This is not fun nor is it challenging, it's just plain frustrating.

This will not do. 

I can confirm this problem too. In my current game there are two AI cities with Shrill Lords within its boarders and one with Drakes. In all 3 cases the lairs are generating wanderers (good!) but those wanderers ignore the nearby AI city and head towards mine. This has forced me to place troops in all my outposts (good!) but its gets annoying after a while and I really dont like it when I lose a developed city to a shrill army showing up, which is a huge setback compounded by the fact I cant rebuild that city because the land is razed. 

I have been messing about with my save and managed to see where one of the monsters was coming from.  It was a group of silt skaths that travelled 9 squares in one move.  

Narr, can't be, I must have pressed return twice or something.

To me it seems like the monsters are awaken by someone capturing a city, but not when originally founding the city. So you or the AI can plop a city next to a drake, but if its taken then the drake will come "alive" and attack.

You are missing the end of your sentence. Here, let me finish it for you.

Plopping a city down should be enough to get the monsters to attack the offending city and not the capital of a faction 15 turns distant.

There we go. Much better.