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I dont get with people saying this knowing your capital cannot go above 3 tiles lenght, you dont need specialized town to fill up that tiny little space
The trick is not to fill all the squares of the capital, but to stake the specialists. Once you have specialists you can literally put 5 populations on each square, and for that you need a lot of growth
You continue to need city growth even after you have filled all the tiles because Specialists are critically important. In the Exploration age alone, you can have as many as three Specialists per tile, so claiming all of the tiles in a city's radius doesn't mean you are done growing that city, or even close to it.
The idea is that you don't need to invest in making every town a city, or in improving every town to its min-max value.
Town's production is always turned in to gold, regardless of if they are specialized or not.
That is true, I am speaking imprecisely. What I should say is that it maximizes the returns you get for each town. For example, mining towns boosting that production value for more gold, or food towns boosting the amount of food forwarded to your City. The benefit in specializing towns is that it magnifies every benefit they provide anyway.