I've built several productive colonies. I've found colonising a luxury in the early stages very useful to combat anarchy. It depends whether the resource you want is somewhere you would normally put a city. Colonies should always be inside your empire borders though, not outside. They can be easily protected, intruding settlers can be ambushed or diverted and eventually your culture absorbs your own work.
I'd have been happier if the concept retained its use for longer but with the founding square always generating resources and culture expanding to 3 tile radius fairly smoothly there are few places a city cannot go, especially after railroad makes even irrigable desert an acceptable city site. If the cities started with a 0 tile culture radius rather than 1 I expect we would see a lot more use of them initially.
I'd have been happier if the concept retained its use for longer but with the founding square always generating resources and culture expanding to 3 tile radius fairly smoothly there are few places a city cannot go, especially after railroad makes even irrigable desert an acceptable city site. If the cities started with a 0 tile culture radius rather than 1 I expect we would see a lot more use of them initially.
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