Yeah, of course you can use the alien in a movie without it being safe and unimaginative. Covenant proves that, even though the creature could've been handled much better. But I'm afraid they'll just go the safe route and make films that are basically remakes of the originals, instead of doing fresh and original things like the prequels.
Scott isn't shitting on the creature, he's just wondering if it's still as effective. While I believe you can still make the alien scary, I also believe he's right in the sense that you have to find new things to focus on, instead of just doing the same old stuff.