The AI hasn't got two things that were characteristic of the AI in civ2:
(1) GANGING UP. By mid game in Civ2 when you were leading, the computer opponents would all gang up into one big alliance, swapping technologies etc. Some people considered this to be cheating a bit. CTP2 demonstrates the result of removing that behaviour.
(2) RABID AGGRESSION. When the AI in Civ2 went to war, it really went to war. It would build units and send them mercilessly to pound your nearest city. Of course it didn't concern itself with timing so the attacks were never concentrated enough to get through and hence it would waste its efforts (except when making a sneak attack after a cease fire. this was the AI's BEST tactic in civ2). In CTP2 we see the result of trying to remove this behaviour. of course in CTP2 it is essential to make big stacks.
I think that if you leave the AI to do it's own thing it will eventually build up an army capable of attacking effectively. But as experienced players, when we wage war in CTP2 we run rings around the AI by instinctively harrassing troops on the march, sinking lone ships, and blocking supply lines. If you fail to use these tactics things can be quite different. I leant the hard way that bombarding a city with artillery will fail if you don't send some troops round the other side the city to stop reiforcements coming in. I've stood my troops down when I've reached my max city limit and tried conducting a limited war only to find that the AI WILL attack my bomber fleet with fighters - often successfully.
So, to conclude, I don't think the computer is COMPLETELY useless, it's just that we play in such a way as to cripple its otherwise promising efforts.
still miss those Russian and Mongolian hordes though...
Don't think he meant to insult Rommel. The point was more about the Australian army. They were hard bastards.