I have a serious problem with pointless destruction of a city environment in an Alien movie. Alien is about the remoteness of space and preventing that from happening. For the alien to reach Earth and start wrecking shit would kind of defeat the purpose of Alien. Shit is about deep space, empty, ominous, deep space, with a small ship on an unremarkable planetoid moon orbiting a gas giant. Wailing its ghostly transmission for anyone to come near like a siren song.
Now I doubt it would be like Eric Red's script, but I could see it quickly going out of control into that, or don't get me started on AVP:R. Aliens and Earth do not mix. Ya can't have your x and eat your y too.
That said it works great for predator, but ever since the introductory titles rolled for the first movie it told you what this movie and its sequels was about. The closest "official" attack on a "town" you could call it was Hadley's Hope, and we didn't need to see what happened because the horror levels would be comically over the top. All you needed to know what they cleaned house. The main three are about Ripley protecting Earth from this dragon, and in the end she succeeds. I can't imagine a way they get to a big city without disclosure of their existence being known to the public rapidly, or how it fits with Ripley's arc as a character as a martyr and a kind of Jean of Arc figure, that despite ultimately dying, she won in the end.
Having aliens rampage through a ground based city just sounds like it could get a bit too Gremlins 2 unintentionally. Now on a space station, that's good shit. Gibson's Anchorpoint (second draft) and Sevestapol were both spectacular ways to deal with the problem. Particularly the latter. It adds the dimension of not being able to escape, being claustrophobic, trapped, and while acid wasn't part of the deal in A:I; introduce that as well. A scared population with guns in a fairly well populated space station to test what would happen. That would be interesting if not a retread.
I just think part of the horror of Alien is the fact it takes place far enough away from Earth trapped, with an absurdly limited time limit to give someone in the audience a stroke. It's a good formula