It is one of the flaws fo the RTW recruiting system. You can't build units fast enough as the Egyptians to keep population down. In smaller cities you can't build armies without depleting the population. It doesn't make sense for dispersed cultures (barbarians, Numidians, Spanish etc.) while it does for ones like the Greeks, and Romans. You sort of need separate city and province approaches: cities for determining what structures and capabilities; provinces for determing what population/resource pools are available. A large developed city would not have a massive rural population, while a small barbarian city would have a large pool of people in the countryside in small villages.
Lords of the Realm II actually had a better population recruiting system. In it population would not only grow (and was tracked by age groups) but it would migrate based on happiness. Happiness and population was used when recruiting armies, and it took time to recover happiness after building a large army. In fact happiness limited how many you were allowed to recruit.
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