I really like the idea of being able to raise your pop cap.
Settlements will provide another different kind of strategic resource to fight over.
It's an artificial and slightly weird solution to the problem of over-booming, however. (That doesn't mean I don't like it; it still might make better gameplay - it adds a feature to the landscape, which is always welcome.)
Alternative solutions:
* Make TC's very expensive. Perhaps all 'generative' buildings (that create units) should be quite expensive. This would reduce flushing, slow expansion, and make the loss of a building quite a blow. (Right now, a barracks costs about as much as 3 infantrymen - that seems a little cheap, honestly - almost not worth defending, cheap enough to build even in very risky areas, almost not worth the time it takes it destroy it.)
With generative buildings more expensive, you'd get a game that was more oriented to killing buildings than it is now - right now, the most important thing is to be able to kill the other guy's peasants or otherwise stop resource gathering.
I don't know whether that would be a better game or not. Might be a slower start but a more interesting fight.
Something along the same lines: make certain buildings more expensive by requiring them to be garrisoned (with the training staff and optionally more military units) before they can be used.
Then if the 'staff' and the garrison is killed off defending the building, the attacker can take over the building by staffing it himself. That would certainly make forward building more iffy!
A town center might require a 'governor' to staff it, and only a governer could train more governers. Likewise, a barracks might require a sergeant to staff it, and only a sergeant (or a governor) could train more sergeants.
Siege weapons or attacking the building H2H would damage a building enough to allow attackers to enter the building and fight the defenders.
Both these changes might result in a more clearly defined territory, rather than buildings being scattered hither and yon - the expense would keep down building count, and the vulnerability of buildings to takeover would keep buildings together.
* Allow TC's to be built anywhere that was appropriate. 'Appropriate' might mean a large open area that was flat and close to fresh water. Enclosed areas (in the woods) would have to be cleared. Areas that were not close enough to fresh water, settlers would have to build a well (using time and stone) first. This reduces TC expansion a lot, depending of course on the map type.
Just some ideas!
Matt thewesson