Larks comments on Superintelligence Reading Group - Section 1: Past Developments and Present Capabilities - Less Wrong
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Agreed. It's not Civilization, but Starcraft is also partially observable and non-deterministic, and a team of students managed to bring their Starcraft AI to the level of being able to defeat a "top 16 in Europe"-level human player after only a "few months" of work.
The game AIs for popular strategy games are often bad because the developers don't actually have the time and resources to make a really good one, and it's not a high priority anyway - most people playing games like Civilization want an AI that they'll have fun defeating, not an AI that actually plays optimally.
The popular AI mods for Civ actually tend to make the AIs less thematic - they're less likely to be nice to you just because of a thousand year harmonious and profitable peace, for example, and more likely to build unattractive but efficient Stacks of Doom. Of course there are selection effects on who installs such mods.