It used to be pretty worthless. Now I think its great for newbies even up to average players. Of course, it cant compete against the best players but I still think it creates an interesting game. The higher settings get more starter points than you do.
There are things that can be done to make the AI harder but if you get to the "impossible" setting and still feel you need a challenge then ask again.
By the way, the AI doesnt get to cheat in the usual way. The esettings only decide how many points it gets in creating its nation and god at the beginning of the game.