As in some other regions of the map the actual Kathiawar is actually bigger than that one province (Kathiawar, Girnar, Navanagar and Bhavnagar are all on the Kathiawar peninsula).
The reason their capital starts in Kutch is that the most powerful dynasty there, the Jadejas, is the same one as in the Kathiawar peninsula. The entire region was home to a number of small states and dynasties historically and this tag covers all of them from 1444 to the time of British India (when these Princely States sorted under the Kathiawar Agency).
As Kutch remained the site of the capital of that Jadeja dynasty for the entire period of the game (though they did move the capital within the province to Bhuj) I'm not sure a decision would be needed to move the capital outside of their historical area personally.
If you're curious this is how the area was looking as late as in the 20th century.
http://upload.wikimedia.org/wikipedia/commons/a/a2/Baroda-gujarat.png
EDIT: It may be that the Kathiawar province should change its name though to avoid confusion.
The reason their capital starts in Kutch is that the most powerful dynasty there, the Jadejas, is the same one as in the Kathiawar peninsula. The entire region was home to a number of small states and dynasties historically and this tag covers all of them from 1444 to the time of British India (when these Princely States sorted under the Kathiawar Agency).
As Kutch remained the site of the capital of that Jadeja dynasty for the entire period of the game (though they did move the capital within the province to Bhuj) I'm not sure a decision would be needed to move the capital outside of their historical area personally.
If you're curious this is how the area was looking as late as in the 20th century.
http://upload.wikimedia.org/wikipedia/commons/a/a2/Baroda-gujarat.png
EDIT: It may be that the Kathiawar province should change its name though to avoid confusion.
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