Apart from providing additional strength for Scouts (and City Guards - who has them anyway?) why would you want more than one per city?
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Because they increase the time you are informed over incoming attacks, so you have more possibilities to call in support.
(Edited by BFH-Wiki)
My standard city build has 2. That way I can house 1000 scouts (at level 10).
Also, my standard is to have as many city guards as I have TS slots in my towers. That way if I don't have a full complement of defensive troops, at least the towers aren't standing empty. CG are cheap and easy to feed; so having 20-30k of them in a city hasn't drained me yet.
(Edited by Jonray12)