I have noticed that the A.I. will surrender even when they are giving up their only city.
They still have their lives.
Air Lord, Engineering Corps
Lives don't matter when you have a flag to protect!
(in seriousness though, i do think they should not retreat if they have nothing left to lose)
Commander, Engineering Corps
Yea, kind of a Bummer when you have your invasion force move to their last city, defended by a massive fleet.
Only to have them surrender...
Maybe making it so once surrenderd, ships move automaticly to their side of the map, and leaving the map before ending the match?