Not sure how I feel about it leading so directly into Alien like that (I kind of really like the idea of David still being out there with his experiments, even as late as post-Alien 3), but I've also (half-jokingly) talked for years about the initial biomechanical Alien somehow being birthed from David, and the likely very weird, probably very convoluted string of events that would have led to that particular outcome could have been very interesting to get to see play out on screen, even if it doesn't totally mesh with the original film. Very likely could/would have been a mess, but I'll never not be curious about this third prequel film (and how it might have evolved over the course of its production).
I remember post-Covenant Ridley talked a little bit about some remaining Engineers being pissed at David and going after him. Any idea if that would have still held true in this "Alien: Destiny" iteration of the Covenant sequel? Maybe one of them might have even been the particular Space Jockey from the chair in Alien, if the plan was to link so directly with the original film.