Shit, even with the budget Paul had, he could have done a space setting, but he couldn't even if he had wanted to, because of those on high.
For me the ideal AVP movie at this point would actually be a cut down affair.
One alien. One Predator. A cast of characters cut from the cloth of films like The Thing or Outland. Civilians, but no push overs. Set on planet that's half desert, half Beksinski painting. An interesting Predator that is never an anti hero but is also in some respects clearly understood. Inspired by the short "Chained to Life and Death."
Just imagine Anytime and Big Chap, toe to toe.