It works with my FW version, too - and I wouldn't call it a real bug... as you pointed out, it can be quite useful - especially if one wants to save space in the events file. (Just consider the problems caused by the corrupted ANYBODY parameters - as a result you have to list up each civs separately... - which is quite memory consuming)
But it does not only work with settlers, it occurs if any barbarien "civil-roled" (i.e. diplomat, trade or settler) unit is killed.
I think the domain does not affect it - so by placing barbarian ships (with an civil role) for instance you could simulating piracy. Other possibilities would be any kind of plundering...
At first I thought the reward amount would depend on the build cost, but tests proved its not so. Does anyone know whether this can be intentionally modified, for example: to have a barbarin trader reward 50 gold, and caravans with a reward of 75 gold?
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