I'm currently playing a game with the Yor - medium map, all 5 AI races on high difficulty, otherwise default layout.
I'm new to the GalCiv 3 series, so if this is "working as intended" by all means let me know. I'd unlocked the Entertainment Capital (EC) colony improvement and decided to place one on a few of my least-happy worlds. Much to my surprise, I learned that each EC adds 75% morale boost to ALL empire planets. So I built a few more. I now have an 800% boost to morale across all planets (I have a few other bonuses on top of the ECs). Needless to say, my population on every world is ECSTATIC. Euphoric. They be trippin'.
And since I'm the Yor, colony population caps don't mean anything to me. I've currently got over 40 population on some 34 pop "max" worlds and the little worker machines are still as happy as can be. I'm thinking about pushing population on all my planets and then building and destroying colony ships if the approval drops below 100%.
Since total production is based on population, I don't see how this can be balanced...