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Let's get the 'The Nations' vs. 'Settlers' comparison out of the way first.
Sure, 'The Nations' does pay homage to the original 'Settlers' game, but unlike it's distant cousin 'The Nations' injects some much needed personality.
Nations citizens are truly unique and there's a distinct feeling of knowing your towns folk.
Critically, this provided me with a real connection to the game where I almost cared about each persons personal development (unlike Settlers 3 where town folk seemed like any other resource).
If memory serves me correctly the only distinction I could make from Settlers 2 to 3 is the introduction of Gods?
Nations has some complex interdependencies and players new to this genre need to prepare for a steep learning curve.
Initial campaigns (not that I've managed to play all of them so far) immediately get you accustomed to the development cycle i.e. gather resources, build and research. Later on you'll get to trade, network and even fight, but the real addiction comes from micro managing your community (that was the real hook for me).
Graphically I love the look. Sure it's old, but the artwork used is affective and looks different to any other Settlers genre game I've played. There's no issues camera zooming, you can zoom out far enough to observe your community and similarly zoom in and track a specific citizen.
The music is functional if not a little mundane, but then again this isn't a fast moving action packed FPS shooter, so maybe that's just as well.
To finish off, it's worth mentioning that there are three races, each with their own campaigns, which would indicate there's plenty of game time to be had here (not forgetting multiplayer modes too, though I'd guess you would need to organise any such on-line event with tools such as Hamachi and a reliable friend).
To summarise, this is a deep and rewarding game. You will need to put some personal effort in to start, but the game pays dividends later on.
What are you waiting for?
Go load your GOG basket now :)