Yeah, the size is daft, I've probably done 10 cities but the only really good ones are with populated maps. It gets to a point where they're interdependent, especially for Water and sewage.
Re the mining, it doesn't pollute that much, no where near as much as standard low tech industrial or fossil power stations. The only problem is as you describe, you need a boat and train access otherwise the city road entrance gets blocked and nothing get sold.
D00k, what server are you on? I'll come and join you.