The AI is definitely affected by depopulation when on Huge unit size. I've played two Seleucid campaigns, one with "Large" and one with "Huge". Due to population issues, the "Huge" campaign went slower vs the Egyptians than on "Large". However, the three nile cities of the Egyptians hadn't even reached 12k in population before I took them in Huge, while they were pushing 24k on "Large". The types of units being hurled my way on "Large" were considerably better than on "Huge" (tech-wise). Both campaigns were on Medium/Medium.
I really like the "Huge" unit sizes, however, until the population cost issue is addressed, it's pointless to fight a campaign on "Huge" unless you like the world being low-pop and the units low-tech.
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