To be fair, AvPR does present what many fans thought they wanted from an alien movie, a setting on Earth where a town or community is under attack and the stakes are high. So I don't think it's necessarily the setting that dooms it. As has been said many times though, the execution was flawed.
I think AvP is arguably a more well put together film, but it had a greater budget and was done under a more relaxed schedule. I'm pretty convinced that had AvPR had the same budget and wasn't shot in a hurried fashion, it would have turned out just as good. AvP tends to fall over its own ideas. Case in point, it takes the 'human teams up with predator to escape/take on the aliens' idea from the comics, but neglects to earn it by providing a build-up or logic to it.