This is really a question for Brad I suspect as it's tied most closely to the AI. Why does Elemental (and GalCiv for that matter) uses a square grid rather than a hex grid?
Hexes seem to make a lot more sense as they approximate distance more consistently. Square grids lead to unequal movement speed as you effectively move faster along a diagonal than you do vertically or horizontally. In addition to inequities of movement, there is also the visual component. Range is harder to visually estimate as it appears much greater towards the corners as it does towards the sides of the square. For this reason, I leave the grid visible in GalCiv2 even though I'd prefer to play with it off.
While any grid of course is a rounded-off approximation of the space it is representing, hexes are arguably a better representation of 2D space and therefore I'd assume a better system to use.
Anyway, I'm sure my point is clear and any strategy gamer (is there any other type of person reading these forums?
knows the difference between them.
So why stick with squares? Too much code invested in the AI based on a square grid? Or, some other reason that hasn't occured to me? Do tell... 
Best of luck with Elemental! I'm as excited and eager as the rest to see this game come to fruition. Cheers, -J.