[Arralen]

Basically, it lets the AI play a different game than the player. Turns it into a F9W9S9 bless monster that has little similarities with the original nation.

Is it fun for a player to go against nations from a totally different game?
Is that really a "satisfying" challenge?
Is it really fun to play against let's say 5 of those nations, which all swamp you with super-blessed summons and have most of its national units not used at all?

I doubt so.

And if someone really needs the challenge of fighting against impossible numbers - there's an easier way to achieve that:
Start a game with AI set to impossible , set research to easy. Hit "next turn" 10x or so without doing anything.
If you're still alive, play normally, but only recruit mages every other turn and never set more than 34% of your mages to research.

Furthermore, I really doubt the idea that the AI "wastes" gold and ressources on units. If there are units in the game which are really a waste to build, than that is a balance issue, not an AI issue. (Yes, there's a BIG balance issue. Yes, I'm gonna do a mod that corrects that.)
I agree that there are units which are somewhat 'special', which the AI can't really make use of. Those might be tweaked, or the devs asked to do something about the AI in that case.