Just finished a game I started in 1.01 (now gonna actually get around to patching to latest version) and the game's getting really good now. The AI, on Normal difficulty, actually put up a fairly solid fight against my cheesy, though not always competent, strategies, captured a couple of my cities, used special units effectively, and AI-controlled Verga even managed to conquer Torax's wildland, something I was scared of much of the game.
Very satisfying to play against an AI opponent that's reasonably challenging even when not playing to the best of its abilities!