That could've actually worked had a deal been worked out with something like Neca.
Neca had been doing the AVP Arcade figures and so maybe a bundle with those could've given out a code for download, or came with a copy of the title. Launch a new figure, or bundle old ones people might've missed out on, and simultaneously get the source product into the hands of the consumers.
If a physical release was just going to end up in the bargain bin anyways, why not bundle it with something the collectors will be already looking for to ensure a sale?
Otherwise outside of Sony and Microsoft saying no, I can't see why this wouldn't get a digital release. It might be chasing the trend of the Nintendo classic products, but that's successful because outside of an original console and title, you have to go through Nintendo and the second-hand market which can have horribly inflated prices, but they are games people know and can't normally get a hold of.
If you have to google a classic title, it's lost for a reason. That's not to say that these titles are bad or that nothing about Street Fighter is big (I know better than to say that), but AVP Arcade is a title more people will recognize considering they are big Hollywood monsters. That's something the average public will know anything about and so if this isn't meant to capitalize on the average public giving a damn about titles native to arcades, then this is a niche of a niche of a niche of a niche product that is going to fail hard.