[1.2] Bug: Allied cities block movement

Do you mean you can't move at all, or that automatic movement stops when you get there?  I found (and it's still annoying) that if I set a unit on course, when it comes across allied territory it stops as if it ran into a wall.  If I try to choose a destination on the other side of the territory, it will walk around it, but I can manually move them one step at a time through the allied territory with no problem.  Pretty sure it's the same way with neutral territory, although there you might get the "Get off my lawn!" message from their sovereign.  Still wonky, but it's better than being completely blocked....

No, I think he means that you can't move through allied cities, outposts or resources, so if there is no other way through, they block movement past them completely.  The only thing you can do is wait for the Alliance treaty to run out (99 turns) and then declare war.

Yes, I mean the latter, as StevenAus said. The former is annoying, considering those units are also my allies, but the latter is game-breaking.

If you had Curgen's volcano you might be able to destroy that city if you really need to

But a simple raise land and lower land spell would help out a lot here, level 3 earth spell.

I'd rather just see the bug resolved and allied cities not block movement.

I don't consider it to be a bug.  Sometimes I want to be able to block even allies to keep them from stealing territory that I've uncovered.  For example, I block the entrance to the Lombard Desert to keep other factions from grabbing resources.

Making allies does not appear to be beneficial to me.   The only time I do it is at the end to make a win after killing all the Empire factions.

I'd rather it work the way that Onomastikon wants it to and you be the one to make the choice to not ally people that you do not want passing through your cities. 

It's also a serious pain to have to leave your own roads to bypass allied units.