I think we should distinguish between a war scenario and an empire build up scenario when using wonders and city improvements.
I noticed in my Civilwar scenario (and the playtesters also) that the AI starts to build many improvements and nearly no units. This isn´t really realistic, especially in a war scenario. So my way is to disable improvements and wonder building and only allowing very important and necessary city improvements (i.e. cathedrals, city walls, harbor). Researching isn´t importing (only some war techs) so libraries and everything else with education will be banned. In a war scenario shouldn´t be time enough for researching.
In a build up scenario you can allow everything, it´s necessary to research, build cities and build improvements for city growth.
Btw, after a little break from civ2 I decided first to complete my Civilwar scenario and then starting with the Medieval Time.
I noticed in my Civilwar scenario (and the playtesters also) that the AI starts to build many improvements and nearly no units. This isn´t really realistic, especially in a war scenario. So my way is to disable improvements and wonder building and only allowing very important and necessary city improvements (i.e. cathedrals, city walls, harbor). Researching isn´t importing (only some war techs) so libraries and everything else with education will be banned. In a war scenario shouldn´t be time enough for researching.

In a build up scenario you can allow everything, it´s necessary to research, build cities and build improvements for city growth.
Btw, after a little break from civ2 I decided first to complete my Civilwar scenario and then starting with the Medieval Time.
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