Concerning 'cultural differentiation',
The game's tech tree is very western-european-centric. If in EU2 we will be able to play any country, including exotics, then there will absolutely have to be different tech trees!
Zulus did not have tercios or cavalry!
I do not think that as the Zulus, you should be allowed to have tercios or cavalry. If you want such techs, why play the zulus anyway? The fun would be beating up on neighboring tribes with your regiments of well-disciplined spearmen and overwhelming small English detachments from time to time.
As I see it, there should be several cultural zones:
This example is for land tech, but should apply for all other aspects of tech development.
1) Western Europe: Already well-known, but should allow for country-specific techs, like Spanish Tercios, English/Welsh longbowmen,
2) Eastern Europe: Heavy on cav tactics, using tabors, somewhat backwards on artillery, introduced arquebusier/musketeers later, limited use of pikemen.
3) India/Afghanistan, etc: Used massed bowmen formations, elephants, and lots and lots of light cavalry. Muskets introduced late and were largely ineffective. Artillery used primarily for sieges. Sometimes used elephants.
4) China: Huge armies of spearmen/billmen/crossbowmen. Used artillery early but ineffectively. Arquebus introduced late. Cavalry role dimminished over time.
5) Americas: Purely infantry armies, until the horse changed the life of the plains indians. Even by 1820 though, horses and muskets were very very rare.
6) Arabs (should include N.Africa, but not Turkey): Mameluke-style warfare. Mostly foot/horse archers. Artillery nonexistant. Muskets very rare even by 1820.
7) Turkey: Very advanced early, but fell behind by 1700. Here is an example of a country that saw their advantage slip away and tried to catch up in the 18th century - unsuccessfully. Why? Not because they did not want to? Turkish military traditions were rooted in their caste system and their society, not in some war manual. Every leader who tried to change this was met with stiff opposition and eventuall assasination, something beyond the scope of the game, which is why I strongly disagree of being able to change everything about your country ( to make Tuscany win, etc.)
Finally 8) Africa: Very backward, mainly because of political fragmentation (fighting each other). Although some African tribes had guns as early as 1500, they did not possess enough to equip units with them, but used them in skirmish roles. It was not until after Idaslawhana (Sp?) that the Zulus had enough muskets to form a small unit of them to cause some havoc at Rorke's Drift.
Tell me that these cultures can be represented with the same tech tree! They can not!