Armourer and foundries available?

[Ludens]

To become Eleutheroi Capital, all other Eleutheroi settlements would need to be wiped out, yes?

Unfortunately no. I am not sure what determines the location of the rebel capital, but I guess it's simply the most central town. And a town can become rebel capital the moment it revolts, leading to strange unit combinations.

[bobbin]

AFAIK the AI's capital is the settlement closest to the center of the faction's territories, they do this to minimise the effects of the distance from the captial on unrest.

The rebel faction is unkillable, it will always respawn when a city rebels.

[Atraphoenix]

I roleplay bandits and brigands as free wanderers. After the establishment of my empire I never kill them, why should I?
It is much better to have reserve armies with an expensive price

[fomalhaut]

that's a good way to think of them, i think of them as perhaps armed sometimes hostile merchants or remnants of opposition in a conquered region. even Alexander fought armed merchant caravan before he left Greece!