Imho in original FE thre was a good unrest system which didn't add unrest from additional cities. So there is no possibility to have 100% unrest in a newly founded town? But this system was changed in attempt to prevent quick pioneer expansion by human player. Another drawback is that there is not much unrest and its not difficult easy to have 0 unrest in every city.
FELH unrest system forces human player and AI to constantly fight with unrest with final victory of Unrest where it is not possible to build anything in the 34th new city of your kingdom when unrest is 100%. AI can't handle these penalties well and can't effectively expand.
On the other hand starting unrest for Normal taxes is reduced in FELH which allows quicker and more easy start, allowing to research and build more quickly. At this point racial traits which grant some techs from the start are less valuable because it is easy to research them, so there is no need to have them.
What do you think? Imho original FE unrest system is better but needs just more unrest? What if unrest should come from bigger levels of towns? For example let village have no unrest, 2 level town - 10 unrest, 3 level town 20 unrest and so on. But unrest from numbers of towns should be removed.