First, the devs acknowledge there are many legitimate game-breaking exploits in the game that could make the game less fun. Option 1 would be to let the AI do them too. Option 2 is for the player to choose NOT to use them. I like both options, though I would like a toggle to prevent the AI doing them sometimes.
Second, the formula for population to production was changed in the mid beta stage to have diminishing returns. This was reverted soon after release for some reason, which through the heavy use of farms allows the insane numbers. Is this balanced? I think it really goes back to my first point above.