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You have misundrestood resource settings, though there is not clear ingame info about them. Strategic balanced just add some strategic resources to your and every body elses starting location, nothing else changes. Abundant and sparse just change strategic resource node sizes. For example iron can be found on 2 or 6 size nodes on normal settings, but those nodes are 1/3 on sparse and 3/9 on abundand settings. Those settings don't affect luxury settings or amoung of strategy resource nodes. Legendary start makes all starting locations better, adding more luxury, bonus and strategic resoruces, it's the only setting which affect other than strategic resources.
Its all about starting locations. Some locations have nice rivers with grasslands and only a few ressources, some locations might be in the desert with nice floodplains + rivers and the possibility for a lot of oil later, some locations might be in the middle of nowhere with no rivers, no hills but a lot of ressources of one kind to trade with. Its some sort of balance for me.
Just make the best out of your situation. I cant remember a game where i had a totally bad location from beginning to the end. If i ever had a bad start, it allways turned out that i have something good later like coal, iron, uranium.
Good to know there really isn't all that much difference between changing between standard etc though.
Too many cities to fast will just slow you down to a point you were better off with one city in the long run.
As for resource distribution, it is a bit weird but i feel it works to. You get your main cluster of recourses for trading purposes, that much is obvious. Then you will find 1, maybe 2 other luxuries. Those extra ones can have the most political influence i find. Where a civ wouldn't ban your main trading resource, because they like you. But your secondary resource is the main resource of the most hated player. Thus affecting entire alliances.
Makes more sense when you put it like that, with the resources. But I mostly have heaps of cities cause I normally try attacking as early as I can. A bit of a warmonger on that part, why I like to spam out cities.
Resources do make sense, just annoying playing on King and up doesn't take much to put you into negitive happiness.