If they must make this Alien 5 movie I would rather them keep it separate and not make the others into bad hyperspace dreams. Personally I think that bringing back the same characters will hold back this franchise. The first three Alien movies are excellent films that deal with Ripley and her struggle with the Alien (and indirectly the Company) even Resurrection focuses on Ripley, the franchise should really move on from these dead characters. I think that new characters should be introduced, and I fear this film will appeal mainly towards nostalgia and fan service rather than making a good Alien movie. I'm not saying this just because I like Alien 3 (a lot of people now like Alien 3) but rather to expand the franchise in a new direction, we have seen these characters story already so just move on. We saw them bring Ripley back and we got Resurrection, they brought back Hicks and we got Colonial Marines. From what we've heard we already know that Newt will live for sure and it is highly unlikely that Ripley or Hicks will die either so there is no threat of death for these characters and we haven't even seen the movie, also why are old people going to fight Aliens?, and on top of that why would these characters go back to fight the Alien again? (are they bored and wanna relive the good old times), and what is the point of making this movie, why is there another encounter with the Aliens with the same characters doesn't this also undo the "happy ending" of Aliens that so many fans were mad at Alien 3 for undoing? Also what will this movie achieve for these franchise, Alien 3 beautifully closed the story and struggle of Ripley in a thoughtful and meaningful way and through her actions saved the universe, what will this movie do that will be so meaningful to the franchise? Canon is what you decide to make canon, I want the movie to be good but from what I've heard and seen I think it will be a rather bland version of what we have seen before that will focus more on fan service (and making a profit) rather than making a good Alien movie.
Also about the comment about the magic egg in Alien 3 what about Ripley's magic arm in Aliens able to overcome the pull of the Alien Queen and the vacuum of space, if anything they all should have died when Ripley opened the airlock.