I noticed the same thing. The AI is pretty decent about pursuing peace now, but occasionally the Muslims will peace with a faction before they've taken the jihad city.
--Other general thoughts/input--
I finally figured out how to win as Russia. I take back what I said about faction balance, it's just fine. What made the difference was the lessons this mod has taught me in diplomacy and economy.
The settlement growth nerf has reinforced my playing style: I use jihad/crusades to build chivalry in my governors, which then parlays into an economic advantage. Not being able to do this gives a huge disadvantage to Russia and the Byzantines -- there's no other reliable way to build big chivalry.
Also, I started an AAR based on UAI 1.6: http://www.twcenter.net/forums/showthread.php?t=132433
I randomed Denmark :p Last time i played them in UAI I got blitzed by the HRE. This time ... we'll see




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