Because 1 luxury point makes one person happy.
Making it to be 2 luxury point would just make managing happinesss to easy.
In Civ2 & Civ1, 2 lurury points were needed in oreder to make one person happy.
So, in Civ3 luxury point are much more powerfull.
In Civ2 & Civ1 it was all 2-2-2 ration, but you could also impove those effects by marketplaces or libraries.
So having 2-2-1 is closer to Civ2 & Civ1 2-2-2 ration, although still weaker (since you don't impove them by building buildings).
Anyway, as far as I have played 2-2-1 is not unbalanced in any way.
In fact it's only more usefull in anicent age, before you get Republic.
Making it to be 2 luxury point would just make managing happinesss to easy.
In Civ2 & Civ1, 2 lurury points were needed in oreder to make one person happy.
So, in Civ3 luxury point are much more powerfull.
In Civ2 & Civ1 it was all 2-2-2 ration, but you could also impove those effects by marketplaces or libraries.
So having 2-2-1 is closer to Civ2 & Civ1 2-2-2 ration, although still weaker (since you don't impove them by building buildings).
Anyway, as far as I have played 2-2-1 is not unbalanced in any way.
In fact it's only more usefull in anicent age, before you get Republic.
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