A flash game? Well, Colony comes pretty close. Demolition City allows you to make buildings and destroy them, as does Crush the Castle. I can't think of any flash games that allow you to build a real "city", but I can certainly name some where you can destroy the cities...
Anything really, doesn't have to have armies, be cool if it did, just something where you add buildings and junk, lime Sim City, so yes like a city simulation I guess.
How about this game? You use this 'blocks' to build a building. Well, you don't really build a city though. You build it and try to make it stand ,and the blocks are in different shapes.