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Is there a nationalism parameter for the population in different provinces to make it easier or harder to annex provinces? (This could help prevent unreasonable annexations).
In the Prussia AAR report I read that Spain took over some parts of Bohemia. Is it possible to change this - so that the AI would prefer cash payments in a peace agreement instead of a province half across Europe?

Not quite implemented the way you mean. The AI uses an algorithm to determine how much it values different provinces. Clearly provinces that produce more are worth more - and provinces on your glory list are worth more to you. Provinces worth more to the loosing nation cost more VPs to take in the surrender terms.

It is unusual for the AI to take territory it doesn't have a major use for - in fact, I don't think I have seen it. However, humans often take really wierd provinces.