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If he doesn't sell those regions to you, you will conquer them anyway. So now at least he gets some money in return instead of having to invest into a defensive force.
Reminds me somewhat of the Louisana Purchase...
That Frogophile just wanted to bolster his armies to fight against the Empire, if I do recall it properly...
Except they're the last faction that needs killing on the entire map and the settlement I can buy is their capital. :P
More constructively and not using extremes to demolish your argument, that's quite true; I have to pay them to nab settlements off them, and the AI does pay money just like the rest of us (just less). Taking it would certainly be worse for them; but then I only get a settlement lowered by one tier... and if it's inhospitable and you just want those settlements to stop the AI from having them, you should take a minor city and buy out their major city :P
Me, too.