Also, the AI never offers anything.  They say things like "oh we should sign a treaty."  So I'm like "okay," which takes me to the negotiation screen.  But all the treaties have a perception value of like 3,000 more than everything I could possibly offer so they refuse every possible deal I could possibly make.  Cant they just offer the treaty to me?!  Even better is when someone that really dislikes me notices that I have unmarried children and suggests that we arrange a royal marriage.  So I'm like "that's cool" and go to the negotiation screen, but when I propose the marriage there the other sovereign refuses.  "What makes you think I would force my family member to into a marriage with YOUR family?"  I dunno, maybe because you said it would be a good idea five seconds ago, perhaps?  Why even bother. 

Basically makes diplomacy impossible if their perceived value of treaties gets too high.

This will surely change as the AI is worked on. My bet is that much of this behaviour is initial place-holder code until a more meaningful algorithm is written.

Agree that these requests can be annoying but it seems that they've become less frequent with the more recent updates. At least it hasn't been every other turn in my current game. The imbalance in value does persists.

Something related that I've noticed is that alliance and treaty request seem equally likely to come from the Kingdom or Empire factions. I feel like the Kingdom factions should be more friendly toward and inclined to treat with other Kingdom factions and same-wise for Empire factions. I'm not suggesting that Kingdom/Empire alliances and treaties shouldn't be allowed but they should be more difficult and expensive. 

I'm also hoping for improved diplomacy as the game evolves. This isn't really a problem just with Elemental. Civ V's diplomacy is awful as well. I think Elemental actually has better diplomacy than Civ V, despite the flaws. It just needs to be refined and expanded in Elemental, whilst Civ V really needs to be reworked.

The worst part is the window that comes up right in the middle of the screen is disruptive.  I could bear it if if were smaller, went straight to the point, had just the sovereigns head maybe, and off to the side.  All the windows that disrupt the visual field to offer minimal information, like with quests, bug me just as much.

The diplomacy part of the game is probably the single most broken bit. Deals are essentially impossible (except maybe a non-aggression pact or two) but fortunately the whole ugly mess can be safely ignored. Enjoy the rest of the game and hope for the best in 1.1.

As for the underlying struggle, near as I can tell it is between vanilla and french vanilla, with maybe a tapioca thrown in for variety (not).

I'll agree with everything posted here.  When an AI offers a peace treaty, its free which is cool.  But if I'm seriously overpowering them I'd like to get some extra gold or materials in the bargain.  When I sue for peace, it usually costs me an arm and a leg.  So I'd like the option to return the favor.